CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Australia’s Westpac bank hit with first trike on executive pay

One of Australia's 'big four’ banks, Westpac has been handed a first strike on executive pay in protest over bonus cuts.

Zena Chamas

Publication date : 2018-12-12T05:35:05+0000

Westpac Australia's big four bank

Westpac's chairman said on Wednesday, the bank will receive a protest vote against its executive remuneration plans.

64 % of Westpac shareholders voted against the remuneration report as the bank copped a first strike during this year’s AGM season.

Before the votes had even been counted, Westpac chairman Lindsay Maxsted announced the bank would receive a first strike.

“ Although the Board took events over the year into account, many have questions whether we went far enough, particularly in reducing short term variable reward paid to the CEO and other executives,” Mr Maxsted told shareholders at Wednesday’s AGM

This comes after Westpac and the ‘big-four’ banks came under fire from Australian regulator ASIC, for impropriety in a deep-dive investigation into Australia's banks.

Last month, Westpac reported flat growth in full-year cash earnings, due to higher costs related to refunds and legal services in the after math of the public inquiry into financial sector misconduct.

"The board takes your feedback very seriously," Mr Maxsted said.

Australian corporate rules dictate that if more than a quarter of shareholders vote against a pay proposal for two years running, they can call for the board to be removed

"Given the many concerns expressed we will reach out to more shareholders this year to fully capture and understand your views."

Westpac shares

Westpac has already factored in $281 million for customer remediation and associated costs, but has indicated that number could continue to grow.

Westpac shares have already shed about 20% so far this year, but were up slightly on Wednesday.

Westpac shares, which were worth $39.84 in 2015 and $31.74 in January this year, were up 1.88 %t at $25.53 on Wednesday.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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