Investors are continuing to vent their anger at executives and directors with shareholders in mining company Western Areas last week revolting over lucrative remuneration arrangements granted to directors. At its annual general meeting last week, the nickel miner saw its non-binding remuneration report rejected by more than 60% of shareholders. Even worse, the company was forced to withdraw two resolutions that proposed granting 200,000 options to directors David Cooper and Chairperson (and 15% shareholder) Terry Streeter.
Even in a sector not renowned for outstanding corporate governance principles, Western Areas managed to alienate shareholders. Despite the company’s share price falling from $12 in May 2008 to $3.03 in March 2009 (the share price has since recovered to $4.88), Western Areas increased remuneration paid to CEO Julian Hannah by 37%.