In a buoyant market with indices reflecting attractive returns to investors in Fiscal Year 2017, there were fewer “strikes” against remuneration reports, and the Australian Securities and Investments Commission described the 2017 AGM season as “less tumultuous”.
There has been an increase in shareholders seen to be holding directors accountable for governance and performance issues. The 2017 AGM season saw a higher number of directors with a larger shareholder vote against their election. There was also a rise in the numbers of general meetings requisitioned by shareholders and seeking to remove directors.
Given the prominence of the Big 4 Banks, which comprise approximately 25 percent of market capitalization of all companies listed on the Australian Securities Exchange, there will be significant focus on the Royal Commission established to conduct an inquiry into Misconduct in the Banking, Superannuation and Financial Services Industry.