Brickworks misses 'strike' but to review bonus scheme
Building products group Brickworks has avoided a "first strike" vote against its remuneration report by a whisker, telling shareholders it would review aspects of its incentive scheme and performance hurdles.
Poll results show that 24.3 per cent of votes cast opposed the report, just less than the 25 per cent needed.
Chairman Rob Millner told shareholders Brickworks would be reviewing aspects of its remuneration practices such as incentive schemes and associated performance hurdles, following criticism from some shareholders.
The size of the short-term incentive - $570,000 - paid to managing director Lindsay Partridge came in for criticism during its annual meeting on Tuesday due to the poor earnings of the company in recent years.
Mr Millner defended the large payout, pointing to the fact that net profit rose to $104.5 million from $30.4 million a year earlier.
Brickworks told shareholders the cross-holding with Soul Pattinson had helped sustain profits through the worst downturn in the building industry since World War II. Additionally, the rise in building activity will flow through to a fatter bottom line this financial year, barring the cost of the push by shareholders Perpetual and Carnegie and Co to unpick the Soul Pattinson cross shareholding, which has already topped $2 million.
The meeting was also told the company intends to appoint another independent director.