Solomon Lew forced to defend bonuses against shareholder revolt
Premier Investments chairman Solomon Lew has hit back at shareholders who voted against the company’s executive pay and served a “first strike” on the board.
Lew was quick to respond to more than 48 per cent of shareholders who voted against executive remuneration at Premierās annual general meeting on Friday.
Chief executive Mark McInnesā salary was $2.75 million and he received bonuses of $2.5 million and shares.
Lew said it was unclear how the dissenting shareholdersā vote could be justified, given the companyās outstanding performance.
āWhere management teams deliver outstanding results, they should be rewarded for doing so,ā he said.
Lew said McInnes and the board had delivered record results in each of the previous nine years.
Premier Investments retail chains include Jay Jays, Just Jeans, Peter Alexander and Smiggle.
Mr Lew claimed the dissenting vote had been driven by proxy advisers.
The shareholdersā vote does not stop the payments but puts pressure on the directors to retain their positions at the next meeting.
Under the `two strikesā rule, if more than 25 per cent of shareholders vote against two consecutive remuneration reports, it triggers a board spill.
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Mr Lew was re-elected as a director, as were Henry Lanzer and Michael McLeod.
While some shareholders questioned Mr Lewās outspoken nature, Premierās deputy chairman David Crean cited the vote result.
āMany retail companies in Australia would love to have Mr Lew as its chairman and heās just received over 99 per cent of shareholder votes,ā Mr Crean said.
Mr Lew this year called on shopping centres to reduce rents for retailers during the height of the pandemic and blasted the performance of department store chain Myer.
Shares were higher by 0.74 per cent to $23.00 at 1338 AEDT.
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