Shareholder revolt against S+G bonuses

vendredi 4 novembre 2016

Bonuses will be paid to executives at loss-making legal giant Slater and Gordon despite a shareholder revolt at the Australian stock exchange listed company's annual general meeting today. 

Local press reports said that nearly 45% of shareholders voted against the company's remuneration report at a meeting marked by strong investor anger. Slater and Gordon's share price has collapsed over the past year in the fallout from its disastrous acquisition of the professional services arm of UK company Quindell. 

Chief executive Andrew Grech told the annual general meeting that the business had almost completed a restructuring which includes a 16% cut in headcount.

Grech is one beneficiary of a bonus package approved at the meeting despite the company's decision to pay no dividend this year. More than 32% of investors voted against the bonus.  

Cash bonuses to chief financial officer Bryce Houghton and chief operating officer Felicity Pantelidis also attracted investors' anger. 

The Sydney Morning Herald quoted one shareholder as saying that the board had ’totally failed’ in its governance role. ’It has really failed to have any financial oversight in place. Not one board member has put their hand up and accepted accountability for this,” Marcel Coleman said. ’The reality is this board has no credibility,’ Coleman said, calling for all members of the board to stand for re-election.

Slater & Gordon Ltd's share price fell by 2.78% to A$0.35 (£0.22) today. 

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Shareholder revolt against S+G bonuses

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