Shareholders knock back GUD remuneration
Shareholders of GUD have knocked back the company’s annual remuneration report, with 45 per cent voting against the packages proposed by the company’s board.
The householder appliance maker was the first victim of the Federal Government’s new executive pay laws, with the company pledged to review its pay packages.
GUD will now have to adjust the remuneration packages and achieve shareholder approval, or face a board spill if shareholders vote against again.
The company’s share value dropped 24 per cent in the same period as GUD’s moved to increase chief executive Ian Campbell’s pay package to 2.3 million, 33 per cent increase.
The company defended its intentions, saying that GUD continued to show a strong performance when compared to other similar companies.
Chairman Clive Hall promised to review pay policies in the face of the shareholder vote, but not before labelling the new pay laws as “crazy”.
Mr Hall warned that other companies will face similar shareholder knockbacks as the AGM season progresses.