Axa directors' fee row, shareholders say 'enough'
January 18, 2008
This Bruce Brammall story appeared in The Herald Sun on February 16, 2001, after AXA AGM.
Directors' pay packets were at issue again yesterday when Axa Asia Pacific's small shareholders told their board enough was enough.
A resolution seeking a 33 per cent increase in remuneration for a smaller board was forced to a full vote at the annual meeting in Melbourne after a substantial `no' vote from the floor.
The recommendation sought to raise total directors fees from $900,000 to $1.2 million.
This was despite the reduction in board numbers from 14 to 11.
Chairman Rick Allert said Axa, 51 per cent owned by French-based Axa SA, had no intention of using the money immediately to increase directors pay.
"We were looking at it as a matter of convenience so we don't have to come back year after year looking for shareholders to approve the remuneration of directors or the total level which can be paid,'' he said. "(But) I guess in hindsight, we could have reduced the amount this time and then gone back in another year or two.''
A ballot vote was also forced for three board positions after shareholder activist Stephen Mayne nominated himself on a corporate accountability platform.
But all three sitting directors were returned with at least 99.7 per cent of the votes each, as well as a yes on the directors fees question.
Mr Mayne attracted just 1.1 per cent of the 1.135 billion votes cast.
After the meeting, chief executive Les Owen said the company's first quarter had progressed well.
Axa, which increased profits by 16 per cent to $309 million last year and raised dividends from 9 to 9.5, was positive on the start to the 2000-01 financial year.
"I think new business is generally up on last year,'' Mr Owen said.
He said the poaching of Axa's life insurance agents from the group's Hong Kong operations had been stemmed, but only after about 200 agents were lost.
"The number of agents which left in December was the lowest (loss) in two years and (there's been) growth in agents in January.''
The Federal Government's lifetime health cover plan, which began on July 1 last year, would also be a significant earner this year.
"Obviously we will be benefiting this year from the premium income."
"A lot of the membership came in July . . . so that the bulk of the additional premium income we get into the health business is a result of the increasing membership will flow through in this calendar year."
Mr Owen said health fund members had grown by one third and continued growth was not expected.
"When a business increases by a matter of 33 per cent in a matter of a couple of months, inevitably you then expect it to slow down."
"I think most businesses would be thinking now that things would be stable or maybe slight increases."
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