ASA urges rejection on iSelect plans
The Australian Shareholders Association is urging its members to reject the remuneration report of insurance comparison website iSelect.
The company has been under pressure from investors and regulators after its poorly performed float in June.
iSelect's share price fell about 30 per cent in August after it did not meet its earnings forecasts outlined in its prospectus.
ASA chairman Ian Curry said the association intended to reject the company's remuneration report because its short-term incentives were too generous while its long-term incentives covered too short a period.
"ASA has concerns regarding STI arrangements, which from 1 July 2013 will be paid in cash biannually and annually," Mr Curry said.
The ASA also did not support iSelect's non-recourse loans, which "protect executives from downside risk at the expense of the company".
The ASA's voting intentions come almost three weeks after the sudden resignation of iSelect's chief executive Matthew McCann.
The company said Mr McCann's resignation was unrelated to an inquiry by the corporate regulator. It attributed it to disagreements with the board.
Before Mr McCann's resignation, iSelect downgraded its revenue targets by $6 million for the year to December after demands by the Australian Securities and Investments Commission to clarify a "potentially misleading" announcement on August 29.
iSelect cut internal revenue forecasts for its health and car insurance businesses but did not tell the market, ASIC said in a letter to company lawyers, obtained by BusinessDay.
Mr Curry said it appeared that iSelect had answered all of ASIC's questions but the ASA was still seeking more information from the company after the regulator's inquiry.
He said the ASA would follow this up in meetings before and at iSelect's annual meeting, scheduled for November 18.
iSelect executive chairman Damien Waller said in the company's annual report released last month that he was "as disappointed as anyone" by iSelect's sharemarket debut.
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