Macquarie Group encountered significant shareholder opposition to its executive remuneration plans at its annual general meeting in Sydney on Thursday, with more than 25% of votes cast against the pay report. This constitutes a 'first strike' under Australian corporate governance rules, which allow shareholders to vote on spilling the board if a second strike occurs next year.
Chairman Glenn Stevens acknowledged the discontent, stating that some shareholders felt the board had not adequately reflected 'risk shortcomings' in its pay decisions. 'The board hears your message and will reflect carefully on addressing those concerns,' he said. The backlash comes amid a series of regulatory actions against Macquarie by the Australian Securities and Investments Commission (ASIC).
In May, ASIC chair Joe Longo issued a strong critique of Macquarie after the regulator launched its fourth action against the company in just over a year. ASIC alleged that Macquarie's securities business had misreported millions of short sales to the market operator for more than 14 years, constituting misleading conduct. Macquarie has said it has remedied the issues and is reviewing the claim, which remains a live legal matter.
CEO Shemara Wikramanayake earned A$24 million in the last reporting period, mostly in bonuses, making her one of Australia's highest-paid executives. Macquarie is known for linking pay closely to profits, but the AGM vote signals investor unease beyond financial performance.
Shareholders also considered a climate-focused resolution demanding Macquarie disclose how its fossil fuel financing aligns with net zero commitments. The resolution, which did not pass, highlighted concerns over the bank's support for a large gas fracking project in the Beetaloo basin in the Northern Territory. Climate activist group Market Forces argued that Macquarie's fossil fuel financing is inconsistent with its climate pledges. Stevens countered that the company's position aligns with Australian government policy, which permits gas expansion during the transition to renewable energy.
