Strike one! Poseidon Nickel shareholders say ‘no’ to directors’ salaries
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Shareholders have called into question the salaries of Poseidon Nickel’s top brass at the company’s annual general meeting.
Poseidon’s 2017 Remuneration Report failed to pass at the explorer’s AGM on Thursday — generating a first strike under the Corporations Act.
Under the ‘two-strikes’ law, which came into effect in 2011, a company’s board can face re-election if shareholders disagree with how much executives are being paid.
A first strike occurs if a remuneration report receives a “no” vote of 25 per cent from shareholders at an AGM.
Poseidon (ASX:POS) company secretary Eryn Kestel said 25 per cent of proxy votes were cast against the remuneration report — constituting a first strike.
The board and management were excluded from voting on the resolution — and many investors didn’t vote, Ms Kestel said.
“The board will revisit aspects of the company’s remuneration framework and will consider with its shareholders whether further changes should be made.”
Last year Poseidon non-exec chairman Chris Indermaur was paid $323,356 total remuneration (including salary, super, options, shares and performance rights) — up from $180,128 in 2016. Performance rights made up $318,314 of the total.
Poseidon non-exec director David Singleton earned $77,958, down from $647,676 in 2016. Mr Singleton stepped down as managing director of the company in January 2016 but stayed on non-exec director role. His pay in 2016 mainly consisted of shares valued at about $276,000 plus salary of $276,000.
Non-exec directors Geoff Brayshaw and Robert Dennis received $74,092 (up from $65,801 in 2016) and $65,879 (up from $65,579 in 2016).
If Poseidon receives another strike on its next remuneration report, shareholders will vote at that AGM to determine whether board members must stand for re-election.
If half of shareholders vote in favour of a board spill, a meeting must take place within 90 days where all directors stand for re-election.
Poseidon, a nickel sulphide explorer, owns three “production-ready” nickel assets to refurbish and recommission into production.
These include its flagship Windarra, which hosts the established Mt Windarra brownfield underground mine, as well as the recently acquired Lake Johnston nickel project and the Black Swan nickel project.
Poseidon fell 15 per cent to 5.1c on Thursday, valuing it at $53 million.