Qube cops first strike on pay

Qube Holdings has copped a first strike against its remuneration report.

All four proxy firms recommended to their clients to reject Qube’s remuneration report. Picture: AAP

Qube Holdings has copped a first strike against its remuneration report at the logistic services provider’s annual general meeting after leading proxy firms used a grab bag of complaints, ranging from alterations made to short-term bonuses to the company accepting JobKeeper, to push for a no vote.

All four proxy firms recommended to their clients to reject Qube’s remuneration report, despite the Australian Shareholders Association supporting the resolution, the weight of the proxy firms was enough to deliver a 52.98 per cent vote against the agenda item.

It is also believed a large proportion of the votes against the remuneration report, as much as 25 per cent of the no vote, came from exchange traded funds (ETF), which typically blindly follow recommendations from proxy advisers.

The sizeable no vote easily eclipsed the 25 per cent benchmark needed to trigger a first strike. It is not the first time Qube has been hit with a large number of votes against its remuneration report with it attracting an 8 per cent vote against the remuneration report last year, 20 per cent in 2018 and 10.6 per cent in 2017.

It is believed this year proxy advisers took umbrage at a number of aspects of Qube’s remuneration and corporate governance including the company receiving JobKeeper payments, adjustments made to short-term incentives and other payment metrics linked to workplace fatalities.

At the AGM, chairman Allan Davies acknowledged the angst from some shareholders over the remuneration report and pledged to address the concerns.

“The board notes there has been criticism of certain aspects of the remuneration report from some shareholders,” Mr Davies said.

“I will be happy to take questions on the issues raised and further explain the rationale for our decisions. I would like to make it clear that at all times the board has placed the interests of shareholders at the forefront of our thinking. However, we acknowledge the critical comments received and will take on board the issues raised for consideration in this year’s remuneration report and into the future.”