Billionaire’s Revenge: Gina Rinehart Votes Against Fairfax Board Pay Package
By Vittorio Hernandez | October 25, 2012 9:44 AM EST
Gina Rinehart, Australia's richest woman, had her sweet revenge on Wednesday against the Fairfax Media board which slammed the door on her face a few weeks ago when she sought a director's seat.
Collection time came for the mining tycoon when she voted against the media company's remuneration report.
The vote, made at the end of the three-and-a-half hour annual meeting, was cast on behalf of Ms Rinehart by her representative, John Klepec, who used her 14 per cent stake. Combined with the rejection vote of other Fairfax shareholders opposed to the media firm's pay policies, the no vote exceeded 25 per cent of shares and gave Fairfax its first strike under the company's two-strike rule.
The Rinehart vote could easily be justified since Fairfax registered a $2.7-billion loss. Fairfax Chief Executive Greg Hywood disclosed at the meeting that the company's revenue for September and October 2012 are expected to be 7.5 per cent lower compared to the same months in 2011.
Due to the losses, Fairfax Chairman Roger Corbett agreed to a 7 per cent reduction on his compensation package which would bring it down to less than $400,000 from the current $430,000 in exchange for the shareholder support of Fairfax's remuneration report.
A second strike would grant shareholders the power to spill the board if they reject again the remuneration report in a second annual general meeting. Reports said 34.4 per cent voted against the report, up from the 17.5 per cent that were not in favour of the report prior to the meeting.
Based on shareholdings, the 34.4 per cent vote represents 590.5 million Fairfax shares, of which 352.5 million are held by the world's richest woman.
Mr Klepec said that Ms Rinehart remains critical of Fairfax because she lost so much money, while the board has been spared. Comparing the AGM battle to the blood doping charges against cyclist Lance Armstrong, Mr Klepec said, "The shareholders have more blood on the floor than you would find in a U.S. Postal Service camper van at the Tour de France but there's been no blood spilt at board level."
To contact the editor, e-mail:
Join the Conversation
- Apple Inc (AAPL) Stock May Reach $150; First Trillion Company Talks, iPhone 6 and Apple Watch Boost Price
- Travel Alert: New Delta Air Lines Airbuses Could Be Seen In Australia Soon
- Travel Alert: Frequent Flyer Tie-Up Between Virgin Australia, South African Airways Enhanced
- Walmart Canada Feeling The Heat As Grocery War Intensifies
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Russia's New Tactical Nuclear Weapons Program Growing Confident Against the US: Talks of World War III
- Apple and Google Engage in Thermonuclear War, New Google Translate Chat App in the Works
- Walmart Offers the Best 2014 Black Friday Deals on iPhone 6, iPad Ai2 & Other Gadgets – Reports
- Update Samsung Galaxy S5 to Android 4.4.4 KitKat, Sprint Release and Installation
- More Nexus 6 Problems Arise with Android 5.0 Lollipop, Poor Benchmark Results and Other Issues
- HTC One M8 Android 5.0 Lollipop Release Delayed: Other Schedule and Installation Guide
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James