For many companies, this is the first year that director and executive remuneration reports will be subject to a shareholder resolution at the annual general meeting. The vote by shareholders is not binding on the company, but there is much interest in what level of opposition will trigger a rethink by companies of their proposals for executive and director remuneration.
A recent survey by the Chartered Secretaries of Australia (CSA) found 28 per cent of respondents felt a 'no' vote of between 35 and 50 per cent would trigger a rethink. The next most popular trigger was 20 to 25 per cent, with 20 per cent of respondents believing this level would prompt a review of remuneration policies and practices.
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