Magellan Financial chief executive Hamish Douglass has withdrawn a $10 million crazy or death payout, amid an investor backlash ahead of the company's shareholder meeting on Thursday.

As revealed by The Australian Financial Review on Monday, the $40 billion global fund manager – which posted a 14 per cent rise in full-year profit to $198.4 million last financial year – was facing a shareholder revolt at its AGM over the proposed $10 million termination payment in the event of Mr Douglass' "unsound mind, incapacity or death".