Elders shareholders deliver first strike on pay
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More news: Shareholders in agriculture and real estate group Elders have launched a first strike against executive pay, with 62.7% of votes rejecting the remuneration report.
The group's board earlier defended a steep pay increase to retain chief executive Mark Allison beyond his planned retirement. Allison will be eligible for $500,000 if he remains at Elders on 1 June next year, and a further half-million if he is still at Elders on 1 June 2025. Shareholders also rejected a proposal to give Allison service rights for staying on for each of the next two years, with more than 63% of votes opposed.
Despite the drama, Elders shares gained almost 4% on Thursday to close at $7.55.
Elders defends CEO pay increase
The news: The chair of agriculture and real estate group Elders has defended a substantial pay increase for chief executive Mark Allison ahead of an expected protest vote at its annual general meeting.
Ian Wilton said the board wanted to retain Allison beyond his planned retirement and adjusted his remuneration for market competitiveness.
The numbers: Allison had his fixed pay raised to $1.5 million.
He is eligible for a $500,000 bonus if he remains at Elders on June 1 next year, and a further $500,000 bonus if he is at Elders on June 1, 2025.
Shareholders will also vote on whether Allison should receive service rights to shares if he remains at Elders for each of the next two years.
The context: Allison said last year that he would retire from Elders by November 2023, but a search to replace him was unsuccessful and the board asked Allison to stay on.
What they said: Wilton said a change of leadership may have jeopardised the progress of its supply chain projects.
In addition, El Nino and economic conditions were impacting customer orders and delays in appointing a leader would add to uncertainty.
"The Board felt it was appropriate to adjust Mark's remuneration arrangements and to put in place a package that has been assessed for market competitiveness, to ensure that his services were retained beyond his planned retirement," Wilton said.
The sources: Elders, ASX Announcement
