Invest
Shareholder revolt: How investors are influencing Australian companies
Invest
Shareholder revolt: How investors are influencing Australian companies
Company boards are being increasingly surprised by the direction of shareholder votes and opinions in the post-royal commission environment, according to a new study.
Shareholder revolt: How investors are influencing Australian companies
Company boards are being increasingly surprised by the direction of shareholder votes and opinions in the post-royal commission environment, according to a new study.

Link Market Services’ AGM Snapshot, an annual report that analyses voting outcomes from some 400 Australian-listed entities, ranging from S&P/ASX 20 companies to the All Ordinaries, showed 27 companies received strikes, up from 22 in 2017.
The 2018 AGM Snapshot also revealed a decline in the influence of proxy advisers, with investment managers only voting in line with their proxies 25.1 per cent of the time, and super funds following their advisers in just 42.7 per cent of resolutions.
Why is this happening?
Link Market Services CEO Lysa McKenna said the contentious AGM season demonstrated the importance of shareholder engagement.

“The increased scrutiny placed on board performance and corporate governance in the wake of the royal commission into the banking and financial services sector has led to investors increasingly forming their own independent views on company remuneration and re-election resolutions,” she said.
“With just one in four investment managers and less than half of superannuation funds voting in line with their proxy adviser’s recommendations in 2018, it is clear companies need a strategy to ascertain and influence major shareholder voting intentions ahead of the 2019 AGM season, through direct engagement and services like proxy campaigns.”
Link also noted an increased focus on director elections, particularly where the entity was underperforming or there were broader governance or risk concerns.
“Historically, director elections and re-elections have been viewed by companies as non-events, often passed with almost unanimous support and few probing questions from shareholders,” Ms McKenna said.
“In the last few years, and especially in 2018, we’ve seen a big shift towards investors requesting directors address the AGM and explain why they should vote in favour of their election, and some companies are even preempting this by having each director up for election address the meeting ahead of the vote.”
A number of ASX-listed companies are utilising hybrid meeting technology to improve shareholder engagement, Link said.
The company noted Oz Minerals and Mirvac experienced increases in AGM attendance of 99 per cent and 188 per cent, respectively, after introducing the technology in 2018.
Ms McKenna anticipates the use of hybrid meeting technology will become more prevalent in the 2019 AGM season and beyond, which, together with the consistent growth in online voting, will continue to “democratise the process”.
“There was a 3.21 per cent increase in online voting in 2018, which is consistent with growth over the past decade,” she said.
“The highest usage rate of online voting technology is in the S&P/ASX 200 with almost half of all votes being lodged electronically, highlighting the utility and importance of the platform.
“After the spike in ‘against’ votes on director elections and remuneration reports in 2018, our key recommendation for the 2019 AGM season is that greater engagement with shareholders is needed throughout the year, particularly with technology making it easier than ever before for investors to voice their displeasure.”

Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more

Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more

Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more

Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more

Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more

Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more

Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more

Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more

Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more

Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more

Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more

Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more

Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more

Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more

Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more

Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more