Avita faces first strike, awaits vote
Avita Medical's two biggest shareholders say they will vote against the loss-making biotech's remuneration report, citing concerns over the pay of chief executive Bill Dolphin and company performance.
A strike will be recorded if more than 25 per cent of shares are voted against the remuneration report.
Australian Ethical Investments and Bioscience Managers control almost 28 per cent of Avita stock. If the company records a second strike next year, it must ask shareholders if they wish to spill the board.
Bioscience Managers, which owns about 7.7 per cent of Avita, said it was likely Avita would need to raise capital in the next 12 months.
"Shareholders are increasingly frustrated that a great technology is being poorly served by the management of the company," Bioscience Managers investment director Bronwyn Dilley said on Wednesday.
"Shareholders are also tired of seeing high short-term incentives, paid in cash, to a CEO who is presiding over mediocre performance."
On Sunday, Australian Ethical Investments said it would vote its 20 per cent stake in Avita against the remuneration report.
Avita chairman Dalton Gooding said the company "welcomes feedback from all its shareholders".
Frequently Asked Questions about this Article…
Avita Medical is known for producing a spray-on skin treatment developed by Australian of the Year Fiona Wood.
Avita Medical is facing a first strike because its two biggest shareholders plan to vote against the company's remuneration report due to concerns over CEO Bill Dolphin's pay and the company's performance.
If Avita Medical receives a second strike next year, the company must ask shareholders if they wish to spill the board, which could lead to significant changes in the company's leadership.
The major shareholders of Avita Medical include Australian Ethical Investments and Bioscience Managers, who together control almost 28% of the company's stock.
Shareholders are frustrated because they believe that a great technology is being poorly managed, and they are also unhappy with high short-term incentives paid to the CEO despite mediocre company performance.
Yes, Bioscience Managers indicated that Avita Medical is likely to need to raise capital within the next 12 months.
Australian Ethical Investments has stated that it will vote its 20% stake in Avita against the remuneration report, reflecting its dissatisfaction with the current management and compensation practices.
Avita Medical's chairman, Dalton Gooding, has stated that the company welcomes feedback from all its shareholders, indicating a willingness to engage with their concerns.
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