Xero chairman David Thodey has defended the accounting software company’s approach to CEO and executive pay, telling shareholders that it’s designed to attract global talent. This comes after two influential advisory firms recommended shareholders vote against the remuneration report at its annual general meeting on Thursday morning. Xero is a software company that provides cloud-based accounting software for small businesses. The company primarily operates in Australia, New Zealand, and the United Kingdom.
Thodey emphasised the necessity of securing leadership in a competitive international market to create long-term shareholder value, given Xero’s position as one of the few truly global SaaS companies on the ASX. He stated that the current framework is necessarily different from many ASX-listed entities and is a deliberate consequence of their strategy and global ambition.
The company’s US-based CEO, Sukhinder Singh Cassidy, became one of the ASX’s highest-paid executives after the board renegotiated her salary in December, taking her target remuneration to $US15.2 million ($23.5 million). This was in addition to a one-off grant of 575,000 options with a fair value of $US26.5 million. Proxy advisory firms Institutional Shareholder Services and Glass Lewis have both advised against approving the deal in notes to institutional investors.
Despite the recommendations from proxy advisors, Thodey asserted the company’s commitment to attracting, motivating, and retaining the global talent required to lead Xero’s global strategy. “While we are committed to listening and responding to this feedback, we are also committed to attracting, motivating, and retaining the global talent required to lead Xeroʼs global strategy,” Thodey said.
