Generation Development Group (GDG) has avoided a strike against its executive remuneration, despite proxy advisor Institutional Shareholder Services (ISS) recommending against it. ISS had raised concerns about “problematic pay practices and inconsistencies with good corporate governance expected among large ASX-listed entities” ahead of GDG’s annual meeting on Thursday. GDG, founded in 1991 and led by former Olympic swimmer Grant Hackett, comprises investment bonds business Generation Life, financial research house Lonsec, and managed account provider Evidential. The company has a market capitalization of over $2.5 billion.
At the annual meeting, investors overwhelmingly supported the remuneration report, with 87 per cent voting in favour and 12.1 per cent against. During his presentation, Hackett stated that the “performance of the group has been outstanding”. Executive chairman Rob Coombe’s performance rights were also backed by shareholders, with almost 82 per cent in favour and almost 17 per cent against.
Another motion, proposing an increase in the remuneration pool for non-executive directors, also received support. The final voting records will be released to the ASX. One of ISS’s specific concerns was loan-funded shares awarded to Hackett and Felipe Araujo, GDG’s second-in-command. These shares, worth $5 million and $2 million respectively and awarded in November last year, have almost doubled in value.
Hackett reiterated to investors that GDG ties benefits to performance, adding that each leader of the different arms of the group were judged on their individual performance. The shares will be transferred to both executives if they hit certain performance goals by March 2030, including a 50 per cent share price growth and a relative total shareholder return of 50 per cent.
