Three major proxy firms now dispute Tabcorp CEO, directors pay

afr.com:

Wagering giant Tabcorp could face a strike against remuneration for the first time since 2018, as proxy firm Ownership Matters and ISS joined the Australian Shareholders’ Association in urging shareholders to vote against the proposed salaries of its CEO and directors.

Ownership Matters has recommended its clients to vote against Tabcorp chief executive Adam Rytenskild’s short-term incentives, arguing a bonus of $1.14 million was “excessive” given the financial performance of the group in FY23.

Ownership Matters said the bonus for Tabcorp chief executive Adam Rytenskild is “excessive”.  Alex Ellinghausen

The proxy firm also said the fees for chair Bruce Akhurst and non-executive directors were similar to an ASX 30 company despite Tabcorp sitting at 145th on the ASX 300 Index based on market capitalisation.

“The CEO post-demerger has salary set at $1.5 million per annum, the same level as the CEO of The Lottery Corp, despite TLC having a current market
cap 4.5 times larger and being materially more profitable,” Ownership Matters said. “Without improvement in the TAH market cap in coming periods, the CEO’s salary will appear high relative to ASX market cap peers.”

ISS told its clients the company had clearly used pay structures from its time as a larger entity, before thedemerger of The Lottery Corporation, describing Mr Rytenskild’s fixed remuneration, short-term and long-term incentive bonuses as excessive. It also said chair and non-executive director fees were not adjusted following the demerger.

“There is an overview of performance outcomes and a stated level of performance relative to target, however, remuneration disclosure is poor and inferior to better corporate governance practices seen in this market,” ISS said.