EXECUTIVES – SALARIES

Boards ‘not tough enough’ to tackle complex pay packages

roymorgansocial Leave a comment

Original article by Damon Kitney
The Australian – Page: 23 : 5-May-17

Australian company boards have been urged to adopt a tougher approach when it comes to dealing with executive remuneration. Paula Dwyer, the chair of both Tabcorp and Healthscope, has told the Australian Council of Superannuation Investors conference that the general public expects directors to hold their executives to account when it comes to meeting pay targets, while she noted that some executive pay packages are excessively complex. Both Dwyer and Aurizon chairman Tim Poole agreed that Australian boards are too risk-adverse.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, HEALTHSCOPE LIMITED – ASX HSO, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AURIZON HOLDINGS LIMITED – ASX AZJ, SCENTRE GROUP – ASX SCG, AUSTRALIA POST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, OZ MINERALS LIMITED – ASX OZL

Rio’s deferral of bonus to Walsh ‘reasonable’

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 13 : 12-Apr-17

Proxy adviser ISS has backed Rio Tinto’s decision to delay paying bonuses to former CEO Sam Walsh until it completes an investigation into the Simandou payments scandal. The firm concluded that Rio’s action regarding Walsh’s short and long-term bonuses was "reasonable". However, ISS also noted that in contrast to Walsh, two Rio Tinto executives who were sacked over the iron ore scandal in Guinea will lose their bonuses completely, which will cost them about $A4m apiece.

CORPORATES
RIO TINTO LIMITED – ASX RIO, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MOXICO RESOURCES PLC

Rio chair’s confusion over pay

roymorgansocial Leave a comment

Original article by James Chessell
The Australian Financial Review – Page: 13 & 16 : 8-Dec-16

Rio Tinto chairman Jan du Plessis has told a UK parliamentary committee of the growing complexity of the remuneration packages of British executives. He noted in particular the trend to measure executives’ performance by an increasing number of performance criteria. Du Plessis also conceded that he has trouble understanding some aspects of Rio Tinto’s remuneration policy, and said companies must do more to justify the high salaries paid to their executives.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SABMILLER PLC, ANHEUSER-BUSCH INBEV SA/NV, HIGH PAY CENTRE, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER

South32 cops criticism on executive pay

roymorgansocial Leave a comment

Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 23 : 24-Nov-16

Institutional Shareholder Services has questioned South32’s short-term incentives scheme given the group’s large net loss for 2015-16 and its industrial safety record. The proxy adviser has recommended that shareholders vote against the miner’s remuneration report at the 2016 AGM. The Australian Shareholders’ Association also intends to vote against the remuneration report, as well as the issuance of share rights to CEO Graham Kerr. South32’s 2015 remuneration report was rejected by 5.6 per cent of shareholders.

CORPORATES
SOUTH32 LIMITED – ASX S32, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, ABERDEEN ASSET MANAGEMENT LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY

Prime chair acts to avoid a second strike

roymorgansocial Leave a comment

Original article by Darren Davidson
The Australian – Page: 21 : 23-Nov-16

The remuneration report of Prime Media Group was endorsed by a large majority of votes cast at the 2016 AGM. Chairman John Hartigan said the company had revised its executive pay structure in response to feedback from shareholders. Prime had incurred a first "strike" against its remuneration report in 2015. Shareholders have also voted against a resolution to hold a meeting to spill the board. Meanwhile, Hartigan has advised that he has agreed to give up half of his director’s fee. Prime posted a statutory loss of $A93.5m in 2015-16.

CORPORATES
PRIME MEDIA GROUP LIMITED – ASX PRT, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NETFLIX INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY

CBA pay revolt triggers first strike at AGM

roymorgansocial Leave a comment

Original article by James Eyers, Julie-anne Sprague
The Australian Financial Review – Page: 2 : 10-Nov-16

At the Commonwealth Bank of Australia’s AGM in Perth on 9 November 2016, the bank received a "first strike" when 49 per cent of votes and proxies rejected the remuneration report. Shareholders objected to the introduction of performance measures that would be difficult to measure and quantify. The meeting was disrupted by environmentalists who chanted a slogan "Act on climate, CommBank can".

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, AUSTRALIAN YOUTH CLIMATE CHANGE COALITION LIMITED

Wesfarmers’ top executive forgo $10m

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 22-Sep-16

Wesfarmers’ annual report for 2015-16 shows that the group’s lower earnings were reflected in the remuneration of its key executives. Group MD Richard Goyder received $A763,514 in base pay, or 30 per cent less than in the previous year. The underlying net profit of the Australian-listed conglomerate declined 3.6 per cent to $A2.3 billion in 2015-16 while net profit fell 83 per cent to $A407 million.

CORPORATES
WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, COLES GROUP LIMITED, KMART AUSTRALIA LIMITED

South32 chief docked $1.2m over mining deaths in Africa

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 9-Sep-16

The annual report of South32 shows that the Australian-listed group’s safety record in South Africa was reflected in the remuneration of senior executives in 2015-16. The miner’s board slashed the short-term incentive payments of CEO Graham Kerr and other top executives after four fatal incidents at its South African mines and aluminium smelter during the financial year. This is estimated to have reduced Kerr’s total remuneration by around $A1.2m.

CORPORATES
SOUTH32 LIMITED – ASX S32

BHP bonuses cut by Samarco disaster

roymorgansocial Leave a comment

Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 20 : 8-Dec-15

Shares in BHP Billiton have shed 23 per cent in the wake of the tailings dam failure in Brazil in early November 2015. The resources giant has responded by reducing the number of bonus shares allocated to senior executives under the 2014-15 long-term and short-term incentives scheme. CEO Andrew Mackenzie will be allocated 339,753 long-term incentive plan performance shares and 69,566 short-term incentive plan deferred shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Westpac under fire over pay

roymorgansocial Leave a comment

Original article by Adele Ferguson
The Australian Financial Review – Page: 1 : 30-Nov-15

Westpac has refuted claims by Ownership Matters that its executive bonuses for 2013-14 and 2014-15 were inflated by a decision to exclude a software write-off from its cash earnings. Ownership Matters argues that Westpac’s ex-CEO Gail Kelly and other senior executives would not have received bonuses if the $A354m software write-down had been included in the bank’s cash earnings. The firm has advised Westpac shareholders to vote against the bank’s remuneration report at its 2015 annual meeting.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, OWNERSHIP MATTERS PTY LTD, DEUTSCHE BANK AG