Westpac suffers second strike on pay; Peter Marriott survives board vote

Westpac hit with landmark second strike on pay report, but investors stop short of move to spill the board.

Westpac board director Peter Marriott at the Westpac Annual General Meeting.Picture: AAP

Westpac has received a landmark second strike, with 35.3 per cent of proxy votes pitted against its pay report, but investors stopped short of endorsing a move to spill the board.

A strike occurs when 25 per cent of shareholders vote against the remuneration report,after a second strike there is then a vote on whether to convene a meeting to spill the board.

About 90 per cent of investors voted against a board spill, where all non-executive directors have to put themselves up for re-election.

Westpac non-executive director Peter Marriott has survived a move to block his re-election to the board, with 58 per cent of shareholders voting in support of him.

Investors did, though, cast a significant protest vote against Mr Marriott of 41.4 per cent as they demanded further accountability for the explosive legal action lodged by Austrac against the bank alleging 23 million breaches of the law. That included facilitating payments with links to child exploitation.

One shareholder at the bank’s annual general meeting, noted Mr Marriott was chairman of the Board Audit Committee and a member of the Board Risk & Compliance Committees.

“I think it’s time for you to move on,” he told the AGM.

Mr Marriott, a former ANZ bank chief financial officer, joined the Westpac board in 2013. Two proxy advisory houses recommended shareholders vote against his re-election, but several large shareholders supported his re-election citing board stability and Mr Marriott’s banking knowledge.

Westpac board member Nerida Caesar was also re-elected to the board, with proxy votes showing 74.5 per cent of votes supporting her.

There was a large protest vote of about 24 per cent against her re-election, after one key proxy house recommended voting against her.

Shareholders have expressed anger and disgust that Westpac directors and executives are yet to face more punitive measures in light of the Austrac allegations.

Former Westpac chief executive Brian Hartzer was a victim of the legal action, while chairman Lindsay Maxsted has brought forward his retirement.

Non-executive Westpac director Ewen Crouch withdrew his tilt for re-election to the board after the Austrac action was lobbed.

Former Morgan Stanley Australia chief and Westpac director Steve Harker was overwhelmingly elected to the board with a vote of 96 per cent. He joined the board early this year.

Non-executive director Margaret Seale, a former board member of Bank of Queensland and Ramsay Health, was elected as 98 per cent of proxy votes were cast in favour of her election. She joined Westpac’s board in March.

Westpac shares closed the day at $24.08, down 1.2 per cent.