During next week, ASA representatives will attend the AGMs of Costa Group, Alumina and Appen.
Costa Group (CGC)
ASA will support all the company’s resolutions to be tabled at the AGM. Although the remuneration report has a number of aspects that do not meet our guidelines, on balance we will support the remuneration report this year in part due to the quantum of remuneration that the CEO potentially receives is reasonable, and is aligned with shareholders, having fallen with the share price.
At the Alumina AGM, we are concerned whether Mr Chen Zeng has sufficient time to manage his workload having missed two full Alumina Board meetings and two subcommittee meetings. While representing the major shareholder, CITIC, we are concerned he doesn’t have sufficient time available to contribute his wealth of experience and understanding of the overall supply chain. For these reasons, the ASA is undecided whether to support his re-election and will directly raise the issue of workload at the AGM, before deciding whether to support his re-election.
Last year, Appen received a first strike with 47.57% against vote on its remuneration report and 43.86% against vote for the grant to the CEO. In coming to our decision to vote on the Appen remuneration report, we have considered both remuneration outcome in FY21 and the FY22 adjustments made to the plan following the strike at the FY20 AGM. For FY21, there appears good alignment between the CEO’s reward package (that includes the future performance tested LTI benefit) and the company performance. The new plan for the CEO for FY22, shows Appen has listened to stakeholder feedback following the strike. While the LTI does not include ASA’s preferred TSR as one of the metrics, this was discussed at the pre-AGM meeting where the Chair explained this had been considered by the Board, but, given the recent share price variability they believed it could result in either an unexpected windfall or unfair disadvantage. He said that this metric may not be a good alignment with company results at this time.
2022 Remuneration Report Strike List
Head to Upcoming AGMs on the ASA website to see all the meetings we will attend, and you can read the voting intention and AGM reports on the How we vote page or the Companies we monitor page or excerpts in EQUITY magazine.
Voting intentions reports on these pages are restricted to member-only and you need to login to view the company pages. You can search by ASX code, company name or date of meeting.
Give Your Proxy To The ASA
Your proxy counts! You can vote your shares or give your proxy to the ASA for the meetings above to be voted as outlined in the voting intentions posted to the website. Give your proxy to Australian Shareholders' Association via online voting or give a standing proxy.