ACSI has announced, on behalf of its 38 Australian member superannuation funds, its expectations of ASX-listed companies and its approach to specific issues for this year’s AGM season. In particular, companies should expect their remuneration reports to be scrutinised.
On 23 August 2012, the Australian Council of Superannuation Investors (ACSI) released a statement entitled Super Fund Expectations: 2012 Voting Season concerning the key themes that will underpin its proxy voting recommendations for the 2012 AGM season for ASX-listed companies.
The statement outlines 6 key themes against which ACSI’s member superannuation funds will be scrutinising board proposals and AGM’s, namely:
- executive pay;
- the ‘two strikes’ rule;
- the ‘no vacancy’ rule;
- director elections;
- capital raising and pre-emptive rights; and
- poll voting.
Of particular concern to ACSI is the issue of executive bonuses. ACSI expects to see an improvement in bonus disclosure across S&P/ASX200 companies, especially in light of further ASIC guidance in the form of ASIC advisory AD 11-130, issued in June 2011, and the introduction of the ‘two strikes’ rule.
With the prospect of a second strike for several S&P/ASX200 companies, ACSI has declined to adopt a fixed policy of either supporting or opposing a spill resolution. Any board spill resolution triggered by the “two strikes” rule will be considered by ACSI on its merits and with reference to factors such as the performance of the board and management.
See ACSI’s media release, dated 23 August 2012.
See also ACSI’s statement.