BRIEFS

PAY I

By InvestSMART · 10 Nov 2012

By InvestSMART ·
10 Nov 2012

Comments

PAY I

Macmahon's first strike

SHAREHOLDERS have delivered Macmahon Holdings its "first strike" over executive pay amid widespread anger over a recent earnings downgrade and a forecast first-half loss. More than 28 per cent of shareholders voted against the mining contractor's pay report on Friday, despite a commitment from executives to take a 10 per cent salary cut for the remainder of the 2013 financial year, as it has a major review of costs and sheds up to 50 jobs.

PAY II

Bank's loss not CEO's

BANK of Queensland's chief executive, Stuart Grimshaw, was paid $1.8 million, including a $500,000 bonus, in the same year the company made a loss. BoQ posted a $17 million loss in the year to August 31, the first by a local bank in two decades. The result was caused by BoQ's exposure to the struggling property market in Queensland, where 60 per cent of its loans are written.

BAILOUT

More money for Dexia

THE French and Belgian governments said they would inject an additional ?5.5 billion ($A6.7 billion) into Dexia, an acknowledgement that the bank's finances have continued to deteriorate since its first rescue in the 2008 financial crisis.

UTILITY

Electricity profits up

VICTORIAN electricity and gas distributor SP AusNet's half-year profit has grown by 16 per cent due to higher electricity prices and an increase in gas volumes. On Friday it said its net profit in the six months to September 30 was $169 million, up from $146 million in the same period last year.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What happened with Macmahon Holdings' executive pay vote and why did shareholders strike?

Shareholders delivered Macmahon Holdings its 'first strike' over executive pay after more than 28% voted against the company's pay report. The protest followed a recent earnings downgrade and a forecast first‑half loss, prompting investor anger despite executives agreeing to a 10% salary cut for the remainder of the 2013 financial year.

What actions did Macmahon executives announce after the shareholder vote on pay?

In response to the shareholder backlash, Macmahon executives committed to a 10% salary reduction for the rest of the 2013 financial year, announced a major review of costs and planned to shed up to 50 jobs as the company addresses profitability concerns.

Why did Bank of Queensland report a loss and how large was it?

Bank of Queensland posted a $17 million loss in the year to August 31, its first loss by a local bank in two decades. The result was attributed to the bank's exposure to the struggling Queensland property market, where about 60% of its loans are written.

How much was Bank of Queensland's CEO paid during the loss-making year?

Bank of Queensland's chief executive, Stuart Grimshaw, was paid $1.8 million in the same year the bank posted a $17 million loss, including a $500,000 bonus, according to the report.

What further government support did Dexia receive and why is it significant?

The French and Belgian governments said they would inject an additional €5.5 billion (about A$6.7 billion) into Dexia. The move acknowledged that the bank's finances had continued to deteriorate since its initial rescue during the 2008 financial crisis.

How did SP AusNet perform in its latest half-year results?

SP AusNet reported a 16% increase in half‑year net profit, with $169 million in the six months to September 30 compared with $146 million in the same period last year. The gain was attributed to higher electricity prices and increased gas volumes.

What themes should everyday investors watch from these company updates?

These updates highlight several investor‑relevant themes: shareholder activism and scrutiny of executive pay (Macmahon), the impact of property market exposure on banks (Bank of Queensland), the role of government support in banking crises (Dexia), and how commodity prices and volumes can boost utility profits (SP AusNet).

Do these company developments suggest immediate actions for individual investors?

The article reports facts rather than giving specific investment advice. Everyday investors should take these developments as prompts to review company governance, balance‑sheet exposure (especially to property markets), and how revenue drivers like prices and volumes affect utility earnings before making any investment decisions.