Newcrest Mining's (NCM) pay practices have been dealt another blow ahead of its annual general meeting on Thursday, with fund manager Allan Gray confirming it has voted its proxies against the gold miner's remuneration report, The Australian Financial Review reports.
According to the newspaper, the fund manager has acquired a 2.5% stake in the miner since June.
“The very first thing you can say is this remuneration structure has not worked in the past,” Allan Gray portfolio manager Simon Mawhinney told the AFR.
“It’s been terrible. The company has not generated any value for shareholders over the past five years or longer yet participants in this remuneration structure have been rewarded handsomely. That can’t happen.”
Allan Gray's position follows that of proxy adviser Ownership Matters and the Australian Shareholders’ Association, and raises the real possibility that Newcrest could earn its first strike under federal legislation on executive pay.