More proof emerged yesterday that the times are changing when it comes
to executive pay, although the story was sadly missed by most of the
mainstream media.

The AGM vote on a generous new grant of 320,000 performance rights for
Coca Cola Amatil CEO Terry Davis was: 369.3 million for and 150.7
million against. The Coca Cola Company of Atlanta voted its 241 million
shares in favour, which means the independent vote was 150.7 million
against and only 129 million in favour. Bingo, that’s called a
revolution in the context of Australian proxy voting.

This is another example of the power of the proxy voting kingmakers,
ISS and CGI. When they recommend against something, institutional
Australia is mobilised. It seems the performance hurdles weren’t high
enough.

Despite the lack of rhetorical dressing from the media, this is a major
rebuff for CCA chairman David Gonski, who also had to suffer the
ignominy of announcing a profit downgrade yesterday which saw the stock
tumble 3.4% to $7.02.

Interesting times. Check out the full proxy voting results here.

Peter Fray

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