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Nine Entertainment Shareholders Deliver First Strike Against Remuneration Report
Nine Entertainment shareholders hand the company a first strike against its remuneration report.
Key points
- Shareholders voted 34.4 per cent against the remuneration report after ISS and CGI Glass Lewis recommended against it.
- Nine's share price has traded as low as 61.2¢ over the past year, and market capitalisation is $1.15 billion, down from almost $2b two
- Nine sold its radio network earlier this year and bought QMS Media for $850m after selling its 60 per cent Domain stake for $1.4b.
Why it matters. Nine now has one strike, and a second strike would mean its board faces being spilled, with shareholders deciding whether the company must spill it.
Nine shareholders voted against the pay report at the annual general meeting on Friday, with 34.4 per cent of votes cast against it, above the 25 per cent strike threshold. The report included a $50,000 rise in chief executive Matt Stanton's fixed salary to $1.65 million and a 125 per cent long-term incentive grant worth an extra $2 million. Proxy advisers ISS and CGI Glass Lewis had recommended voting against it, objecting to the size of Mr Stanton's pay.
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Nine Entertainment Shareholders Deliver First Strike Against Remuneration Report
Shareholders of Nine Entertainment have delivered a first strike against the board's remuneration report at the company's annual general meeting. A strike is recorded when at least 25 per cent of votes cast oppose the report. The result comes during a difficult year for the media company, which has seen its share price plunge. Investors have also questioned Nine's acquisition of an outdoor media company, and key executives have departed. The company has also faced a staff revolt in its television news division and the exit of both presenters of one of its news bulletins. Under the rules, a second consecutive strike would trigger a spill resolution to vote out the board.