Vote blow for iSelect chiefs
At its first annual meeting since it was floated in June, about 28 per cent of votes were cast against its remuneration report.
If a company receives two strikes - a vote of 25 per cent or more against its executive-pay report two years in a row - a vote on a board spill is triggered.
The Australian Shareholders Association urged a vote against the report because it believed its short-term bonuses were too generous, while its long-term incentives covered too short a period. The ASA also did not support iSelect's non-recourse loans, which it said protected "executives from downside risk at the expense of the company".
Almost 11 per cent of votes were also cast against the re-election of Leslie Webb as a director.
iSelect's shares have never traded above their issue price of $1.85. On Monday they closed at $1.20.
Founder and executive chairman Damien Waller told shareholders: "The important thing to bear in mind is that our performance on the stock exchange isn't the result of something fundamentally wrong with the business."
Frequently Asked Questions about this Article…
At iSelect's recent annual meeting, about 28% of votes were cast against its remuneration report, marking a first strike against the company. This indicates shareholder dissatisfaction with the executive pay structure.
A 'first strike' occurs when 25% or more of shareholders vote against a company's executive-pay report. iSelect received its first strike with 28% of votes against its remuneration report.
If iSelect receives a second strike, meaning another 25% or more vote against its executive-pay report next year, it could trigger a vote on a board spill, potentially leading to changes in the board of directors.
The Australian Shareholders Association urged a vote against iSelect's remuneration report because they believed the short-term bonuses were too generous and the long-term incentives covered too short a period. They also opposed the non-recourse loans, which they felt protected executives from downside risk at the company's expense.
iSelect's shares have never traded above their issue price of $1.85. As of the recent report, they closed at $1.20, indicating a decline in share value since the float.
Concerns about iSelect's executive pay structure included overly generous short-term bonuses, inadequate long-term incentives, and the use of non-recourse loans that shield executives from financial risk.
Almost 11% of votes were cast against the re-election of Leslie Webb as a director, indicating some shareholder dissatisfaction with his role on the board.
iSelect's founder and executive chairman, Damien Waller, told shareholders that the company's stock performance was not due to any fundamental issues with the business, suggesting external factors might be influencing the share price.
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