ASA urges rejection on iSelect plans
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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The Australian Shareholders Association (ASA) is urging a rejection of iSelect's remuneration report because they believe the short-term incentives are too generous and the long-term incentives cover too short a period.
The Australian Shareholders Association (ASA) is urging a rejection of iSelect's remuneration report because they believe the short-term incentives are too generous and the long-term incentives cover too short a period. Additionally, they are concerned about non-recourse loans that protect executives from downside risk at the company's expense.
Since its float, iSelect has faced pressure from investors and regulators due to its poor performance. The company's share price fell about 30% in August after failing to meet its earnings forecasts.
Since its float, iSelect has faced pressure from investors and regulators due to its poor performance. The company's share price fell about 30% in August after failing to meet earnings forecasts outlined in its prospectus.
The ASA is concerned about iSelect's short-term incentive arrangements, which are paid in cash biannually and annually, and the use of non-recourse loans that protect executives from downside risk at the company's expense.
Matthew McCann's resignation as CEO of iSelect was attributed to disagreements with the board, and the company stated it was unrelated to an inquiry by the corporate regulator.
Matthew McCann's resignation was attributed to disagreements with the board, and the company stated it was unrelated to an inquiry by the corporate regulator.
iSelect downgraded its revenue targets by $6 million for the year to December after demands by the Australian Securities and Investments Commission (ASIC) to clarify a potentially misleading announcement.
iSelect downgraded its revenue targets by $6 million for the year to December after the Australian Securities and Investments Commission demanded clarification on a potentially misleading announcement.
The ASA is concerned that iSelect's short-term incentives are too generous and that the long-term incentives cover too short a period. They also disapprove of non-recourse loans that protect executives from downside risk at the company's expense.
The ASA plans to seek more information from iSelect and will follow up in meetings before and at the company's annual meeting scheduled for November 18.
The ASA plans to seek more information from iSelect following the regulator's inquiry and will follow up in meetings before and at iSelect's annual meeting scheduled for November 18.
iSelect's executive chairman, Damien Waller, expressed disappointment with the company's sharemarket debut in the annual report released last month.
iSelect's executive chairman, Damien Waller, expressed disappointment with the company's sharemarket debut, stating he was 'as disappointed as anyone.'
iSelect cut internal revenue forecasts for its health and car insurance businesses but did not inform the market, which was highlighted in a letter from ASIC to the company's lawyers.
While it appears that iSelect answered all of ASIC's questions, the ASA is still seeking more information from the company following the regulator's inquiry.
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