AMP avoids second strike on remuneration report
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The news: AMP has avoided a second strike on its remuneration report, with the vast majority of shareholders voting in favour of the resolution.
The numbers: During the company’s annual general meeting today, the board received 92.4% of votes in support and 7.57% against the remuneration report. A vote of more than 25% against would have triggered a board spill as last year’s remuneration report received just 50.9% of votes in favour.
Following the AGM, AMP shares were up 0.42% to $1.19 by 2:10pm AEDT.
The context: Last year’s ‘first strike’ against the remuneration report led the board to change its short-term incentive framework, enhanced remuneration targets and outcome disclosures. It also reassessed and changed the remuneration benchmark group that was a reference point in setting both executive and non-executive director remuneration to better reflect the relative size and complexity of AMP.
What they said: During the AGM, outgoing chair Debra Hazelton said: “For executives, as part of the transition to a leaner organisational structure, during the year we further reduced the number of key management personnel, and the short-term incentive outcomes were lower in 2023 than the prior year. Also, during 2023 although several long-term incentive plans were performance tests, no payouts were made”.
“There are no immediate plans to change or reduce existing potential remuneration levels for the current high [performing executives, however the levels will likely be reset when considering succession planning,” she said.
“... We remain committed to meaningful engagement with our shareholders on remuneration. The board seeks to balance: stakeholder expectations, attracting and retaining high-performing talent, and of course, meeting all regulatory obligations.”
The sources: ASX announcement, ASX announcement
