Australia's Magellan Financial shareholders vote against remuneration report (updated)

Magellan Financial

08/11/2023 04:47

(Adds details in paragraphs 3; background in paragraphs 4-6;
CEO comment in paragraphs 7-9)
       Nov 8 (Reuters) - Magellan Financial Group's  MFG.AX 
board received a "first strike" on Wednesday, with shareholders
voting against the Australian fund manager's remuneration report
on executive pay, following years of share price slide and fund
outflows. 
    More than 58% of its shareholders voted against the adoption
of the remuneration report at Magellan's annual general meeting
(AGM). 
    As more than 25% of shareholders rejected the remuneration
report, or made a "first strike", the company's board faces the
prospect of re-election if there is a similar outcome at next
year's AGM.
    The company has been grappling with falling shareholder
confidence and decline in its share price since its co-founder
Hamish Douglass announced a surprise exit in February 2021.
    Magellan's total assets under management stood at A$34.3
billion ($22.07 billion) as at Oct. 31, compared with A$114.8
billion as of September 2021. 
    The company's stock has fallen 20.1% this year so far and is
currently trading at A$6.9. It had reached around A$51 in July
2021.
    "I acknowledge and appreciate we have tried your patience
over the last 2 years," said Executive Chairman and CEO Andrew
Formica.
    Formica acknowledged the feedback from shareholders and said
the firm had a plan in place to return to growth and turn around
the company. 
    Magellan has a strong balance sheet he added, and it was
actively exploring acquisition opportunities.    
    
            
($1 = 1.5540 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Rashmi
Aich)
 ((Roshan.Thomas@thomsonreuters.com;))