Seven faces dissent over CEO Jeff Howard’s $1.25m performance rights
Influential proxy adviser ISS took issue with undisclosed performance targets and noted the amount was “excessive” compared to peers ahead of Seven's AGM this week.
Seven West Media’s biggest investors are being urged not to grant performance rights to the company’s CEO Jeff Howard as its board, chaired by billionaire Kerry Stokes, prepares to front shareholders at this week's annual general meeting.
In a report circulated among clients ahead of Thursday's AGM, proxy adviser Institutional Shareholder Services (ISS) recommended a vote against granting 8,185,985 performance rights worth $1.25 million to Howard, who took over the top job in April this year.
The influential proxy adviser’s note to clients, obtained by Capital Brief, took issue with the fact that the performance rights would vest based on undisclosed targets. It also noted the amount was “excessive” compared to peers with similar market capitalisations to Seven, which this year fell out of the ASX 300 and has a current market cap of about $253 million.
“A portion of the grant will vest based on the achievement of undisclosed targets in relation to the company’s Transformation Strategy. The use of these targets is not deemed acceptable and demanding and would not satisfy accepted standards of corporate governance in Australia,” ISS said in its report.
