FRICTION AT TABCORP A.G.M.
Some shareholders unhappy with executive pay increases and the plan for a merger with Tatts.
A significant number of Tabcorp shareholders, led by The Australian Shareholders Association, reportedly objected to proposed hikes in executive pay packages and were unhappy with the company plans for a merger with rival gambling group Tatts.
Local media reports Tuesday claim that 22 percent of voters were against the proposed pay rises at the company AGM in Sydney – just 3 percent short of the "first strike" level that would have allowed a motion to progress.
They were heavily outnumbered by votes in favor of the pay increases which were cast by just over 75 percent of shareholders.
The Australian Shareholders Association was similarly defeated in its call for Tabcorp to give shareholders a vote on the planned Tatts merger when chairman Paula Dwyer dismissed the motion, confirming that only Tatts shareholders will be asked to vote on the issue.
Observers noted that the merger still has some way to travel, and will require approvals from other bodies including the Australian Competition and Consumer Commission, which has already expressed some reservations about the deal.