We are very intrigued by the provision that a two-times vote against CEO pay has meaningful consequences in Australia. And needless to say, not impressed with the “everyone does it” excuse.
Telstra is considering an overhaul of how it calculates executive bonuses after suffering a first strike from shareholders opposed to its remuneration report.
More than 60% of investors voted against the telco’s remuneration report at Tuesday’s annual general meeting, raising the prospect of a board spill in 12 months if it doesn’t address widespread unhappiness among shareholders.
If more than 25% of shareholders vote against the remuneration report at next year’s AGM, it would constitute a second strike and trigger a forced spill of board positions….[Chairman John] Mullen said 2018-19 would be another difficult year for Telstra but urged shareholders to hold tight.
In June, Telstra announced it would axe 8,000 jobs.
The secretary of Unions NSW, Mark Morey, questioned why executives were pocketing millions in bonuses while workers faced unemployment.
“It’s about executives taking enormous pay bonuses while they’re obviously contracting out the workforce, increasing job insecurity and not investing in a workforce that can deliver to Australian businesses and Australian families,” he said.