Magellan seeks to increase non-exec pay by $1m
Magellan is proposing increasing the maximum aggregate remuneration for non-executive directors by $1 million dollars.
This would see the maximum capped at $1,750,000 per annum in any financial year.
Chairman, Hamish McLennan, said this followed a review of its programme by an independent adviser which found Magellan’s pay was “significantly below” other market peers.
The last increase had taken place in October 2017 when shareholders agreed to increase director remuneration from $500,000 to $750,000.
The firm was targeting six independent non-executive directors and one executive director in chief executive, David George, which meant it was currently seeking two new directors.
“We are currently undertaking a board renewal program to ensure that the board has the right skill mix, expertise, independence and diversity to support Magellan’s future strategic direction,” McLennan said.
“Having regard to benchmarking data, as well as other factors including the additional roles and complexity of the work being undertaken by the non-executive directors, the board considers it is necessary to increase director remuneration in line with market rates and feedback from the search process.
“The proposed increase is necessary to retain existing independent non-executive directors by addressing the disparity between their current remuneration compared with market and industry peers.
“In doing so, this will ensure board continuity and the retention of corporate knowledge. Independent benchmarking data on non-executive director remuneration shows that the current fees paid to the company’s non-executive directors are significantly below those of the company’s market peers.”
He also noted previous directors had also participated in a share purchase plan (SPP) which was currently suspended.
“With the SPP loan program now suspended, this aspect of the value proposition to attract new non-executive directors is no longer available and the board considers it necessary to increase director remuneration in line with market rates.”
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Laura Dew
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The hutzpah of some people! Hutzpah: a wonderful turn of phrase best summed up by the example of a man found guilty of murdering his parents and throwing himself on the mercy of the courts, because he is an orphan.
Unbelievable. FUM tanking, performance average, mandates disappearing, ratings falling - and they want a pay rise.
Here we go “ skill mix, expertise, independence and “diversity”. Oh boy. the discriminatory hiring policy of complexion, gender, or who you choose to lay with. All traits that have zero to do with the job. Btw these fakers run this biggest racket in town. High fees, never accountable to actual clients. Platform fees are modern day fraud and they never reduce.
Why would anyone put any funds either as an investor or shareholder into this company?