Shareholders of Seven West Media delivered a “first strike” against executive pay at the media group’s annual general meeting.
Proxy advisory firm CGI Glass Lewis had called out the pay of CEO Jeff Howard, on a base of $1.25 million a year plus share performance grants.
However, no short or long term bonuses have been paid to senior executives at Seven for the last two years, according to the latest annual report.
The board of directors has also been criticised for lack of consultation with shareholders on its non-cash, all share, merger with audio player SCA.
At the company’s AGM yesterday, 35.54% of votes went against the remuneration report.
A vote of 25% is considered a first strike. A second strike triggers a vote to spill the board of directors.
Seven told the AGM it had expanded cost cutting to $50 million from $35 million as the advertising market slows.
In a trading update, the media group said total TV advertising revenue in the September quarter was in line with the same three months last year.
However, the market slowed in October, down an estimated 12% to 13% compared to same month last year.
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