TPG Telecom faces pressure over executive pay


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TPG’s share worth was comparatively flat within the 12 months to July however surged, from $5.68 on August 15 to a excessive of $9.31 on August 30, after merger plans with Vodafone were announced. TPG’s share worth was $7.55 at shut on Monday. The competitors regulator will decide about whether or not to oppose the deal later this month.

Since final yr’s vote, TPG remuneration committee chairman Denis Ledbury has spoken to shareholders and offered further particulars concerning the incentives given to prime administration.

The further disclosure within the annual report has satisfied Ownership Matters co-founder Dean Paatsch to vary his thoughts, with the corporate voting towards the remuneration report in 2017 however supporting the executive pay this yr. CGI Glass Lewis can also be recommending shareholders vote for the remuneration report.

Chief executive David Teoh, who owns 34.1 per cent of shares, had a 1.5 per cent improve in his fastened pay to $1.78 million in fiscal 2018, largely because of non-monetary advantages resembling a automotive. His base wage has not elevated for 4 years, whereas different executives’ pay elevated by as much as three.2 per cent. He was given a $1.6 million short-term incentive bonus.

As a serious shareholder, Mr Teoh is given short- somewhat than long-term incentives, whereas different executives have each.

ISS co-founder Vas Kolesnikoff’s report stated there had been “some strides in improving the disclosure” however was not satisfied there was sufficient info to find out whether or not the pay was applicable.

Mr Teoh has had “three straight years of maximum [short-term incentives] … a period of which corresponds with negative shareholder wealth outcomes,” the report stated.

Despite this, he didn’t need a spill of the board “given that the company has taken steps to improve disclosure”.

ISS has suggested a vote towards the re-election of board members Robert Millner and Shane Teoh (who’s executive chairman David Teoh’s son), arguing Mr Millner has too many board roles and each administrators are usually not thought-about unbiased. The ASA really helpful towards each administrators on comparable independence grounds.

Billionaire Mr Millner is chairman of Washington H Soul Pattinson and has been on the board of TPG for 18 years (Soul Patts controls about 25 per cent of the corporate’s shares). Mr Teoh is ineligible to vote on the remuneration report, although Soul Patts can nonetheless vote.

Jennifer Duke writes about media and telecommunications.

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