MELBOURNE (Reuters) – Shareholders voted against the executive pay plan for Australia’s biggest electronics retailer, Harvey Norman Holdings Ltd <HVN.AX>, for a second year running on Wednesday, however they did not back a push to dump the board.
About 48% of the votes cast at the group’s annual meeting were against the remuneration plan proposed for Chief Executive Katie Page and other executive directors, according to the count in a company statement.
Page’s husband, Gerry Harvey, is the founder and chairman of the company.
Under Australian corporate rules, if more than a quarter of shareholders vote against a pay proposal two years in a row, another vote is instantly held to call a meeting to replace the board.
While rejecting the pay plan, Harvey Norman investors overwhelmingly opposed the call for a meeting to replace the board.
The outcome defied recommendations from the Australian Shareholders Association, the Australian Council of Superannuation Investors and proxy adviser Ownership Matters calling for a vote to appoint independent directors.
Harvey Norman shares fell 1.2% in a broader market <.AXJO> that rose 0.9 percent.
(Reporting by Sonali Paul; Editing by Stephen Coates)