Cochlear Limited
(ASX:COH) has been hit with its first ‘strike’ on executive pay after more than 30 per cent of its shareholders voted against the CEO’s remuneration report and long-term incentive plan.
The hearing device manufacturer’s chairman Rick Holliday-Smith told shareholders at the company’s AGM yesterday he was disappointed some shareholders had voted against remuneration-related decisions.
Mr Holliday-Smith says there are a range of understandable views and Cochlear’s board will review fees in terms of fair market levels in the future and not increase fees in the current financial year.
Under the recently amended Australian Corporations Act, shareholders can request its directors go up for election if more than 25 per cent of eligible shareholders cast a vote against the remuneration report for two consecutive years.
Cochlear’s net profit dropped to $56.8 million in fiscal 2012, from $180 million the year before, impacted by the recall of one of its products.
