Property developer Lend Lease has suffered a “first strike” against its remuneration report, with a 26% vote against its plan at today’s annual general meeting.
The company is among the first major companies to be hit with a strike this annual general meeting season. As at last count 17 companies have received a strike over executive pay this shareholder season.
Company chairman David Crawford told the Sydney meeting the property group would rework executive incentive plans in the wake of accounting issues uncovered in the Abigroup construction business.
There will be a 10% reduction in the quantum of the short-term incentive award for the last financial year for chief executive Steve McCann and some other senior Lend Lease executives.
Crawford said that the business environment was expected to remain difficult over the coming year, with Lend Lease in a strong position.
“We have good visibility over earnings in the 2013 financial year and have continued to win new projects that will underpin future earnings growth,” he said.
“We are well on the way to delivering our target 15% return on equity over the medium term.”
“I am very pleased that, while in a tough environment and with challenges in some of our sectors, Lend Lease has stayed on course with its strategy and increased earnings for security holders,” said Crawford.
“Underpinning our strategy is a constant commitment to safety, sustainability and diversity."
He said over the year, the group had continued its stringent portfolio management to ensure it has the right mix of projects, sector and risk exposure as well as a disciplined capital allocation and return framework.
A “first strike” is registered when more than quarter of shareholders vote against a company’s remuneration report.
If is is repeated the following year, it can lead to a board spill.