Public support and other stakeholder interests need to be considered when companies reward management.
Public support and other stakeholder interests need to be considered when companies reward management.
In Australia, we voted against the remuneration report of an automotive parts and solutions provider due to its approach to executive bonuses in light of the company’s receipt of wage subsidies during the year, staff redundancies and a capital raise the company had conducted to meet challenges related to Covid-19.
Under Australia’s two-strike rule, the company will be required to hold a ‘spill resolution’ on potentially removing the entire board members (with certain exceptions including the managing director) if the remuneration report receives a second consecutive vote of more than 25% votes against at the next year’s AGM.
