Magellan shareholders vote against remuneration report

The news: Shareholders have lodged a first strike against embattled investment manager Magellan, with 58% of votes protesting the group's remuneration report at today's AGM, the Australian Financial Review reports.

The numbers: Only 40.1% of votes were in favour of the report. A first strike is when at least 25% of shareholders votes against a remuneration report. A similar vote next year would lead to a motion to spill the board. John Eales will remain on the board as a director, after the former Australian rugby union captain secured 60% approval from shareholders.

The context: Magellan's funds under management have shrunk from $113.9 billion in mid-2021 to $34.3 billion in its latest monthly update.

What they said: "Having spoken to many shareholders, we understand there are a number of reasons for this including remuneration outcomes not aligned to business performance, the CFO CEO fixed pay levels, a lack of share based short term or long term incentive and material retention incentive awards,” Magellan chair Andrew Formica told shareholders.