Platinum receives second strike on remuneration report, avoids spill
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The news: Platinum Asset Management received a second strike on its FY24 remuneration report at the fund manager's annual general meeting this morning.
The numbers: Prior to the AGM, 50.95% of proxies voted against the adoption of the report, with 48.32% in favour. The resolution is "advisory only" and non-binding.
However, 95.89% voted against a resolution to spill the board.
Shareholders also voted against (53.62%) the grant of deferred rights to its new managing director and chief executive Jeff Peters.
Platinum shares lifted 0.9% to $1.18 by midday AEDT. In August, the trouble fund manager slashed dividends and reported a 44% drop in full-year profit, sending its share price tumbling.
Last week, Platinum reported that its funds under management had continued to fall to $12.18 billion in October from $12.47 billion in September. It experienced net outflows of about $416 million during October. At its peak in 2015, Platinum was managing about $30 billion.
The context: Following last year's AGM, where Platinum received a first strike against the adoption of its 2023 remuneration report, the company's board sought feedback from shareholders and proxy advisors.
Platinum said it implemented "more financial oriented and quantifiable" key performance indicators (KPIs) for its management personnel after feedback that its KPIs were "too qualitative, lacked quantifiable targets with insufficient financial metrics".
Following feedback that there was "misalignment of pay, performance and shareholder outcomes" in the 2023 report, Platinum reduced variable remuneration outcomes for management personnel by 59% in aggregate on the prior year.
Platinum also simplified its remuneration plans and closed its long-term incentive plan to new awards, on feedback the the remuneration framework was "overly complex".
The source: ASX announcement
