The embattled asset manager announced the immediate exit of chief executive David George after less than two years in the top job on Wednesday, but Street Talk understands proxy advisers remain unsatisfied.
Sources said Ownership Matters and the Australian Council of Superannuation Investors (which represents major pension funds) have both recommended against the remuneration report and the re-election of famed rugby union player John Eales, echoing calls made by activist investor Sandon Capital.
Glass Lewis is recommending its clients vote against the remuneration report but has only raised concerns about Eales.
Naturally, proxy recommendations are backward-looking and don’t consider last week’s ruptures, but we get the sense they’re still looking for a major reset, with eyes on the alignment of any chief executive’s pay to the company’s turnaround.
While Eales’ chairmanship of the remuneration committee doesn’t help matters, sources voiced that much of the blame for Magellan’s problems was being heaped on his shoulders as the only director up for re-election, drawing a comparison to Qantas director Todd Sampson.
As for the annual meeting, things are still up in the air. Around 60 per cent of Magellan’s register is retail shareholders and the Australian Shareholders Association is yet to publish its voting intentions. History shows around 45 per cent of shareholders turn out to vote.
