Rio Tinto shareholders reject executives pay in caves blast backlash
May 6, 2021 10:50 PM PHT
Reuters
A majority of Rio Tinto s shareholders rejected the global miner s executive pay packages on Thursday, May 6, in a backlash over its destruction last year of ancient rock shelters in Western Australia.
Rio Tinto blasted 46,000-year-old rock shelters at Juukan Gorge last May to expand an iron ore mine, sparking condemnation from investors, politicians, its own staff, and the wider community.
Following the company s Australian annual meeting, Rio Tinto said more than 60% of votes cast by investors in the Anglo-Australian dual-listed company were against its remuneration report.
Who checks when super funds cross the line?
Industry super funds are a good example of the age-old agency problem. The Treasurer is right to call for more transparency.
May 4, 2021 – 6.39pm
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The agency problem is one of the oldest in capitalism. Shareholders own the company, and managers act as their agents.
In a widely cited work, lawyer Adolf Berle and economist Gardiner Means described in 1932 how company shareholders were dispersed and passive while company managers and directors worked together.
Super funds want to unseat directors who are not quick enough on climate issues.
Louie Douvis
The separation of ownership from control allowed managers to enrich themselves, or build corporate monuments that may not benefit the owners.
Australian Treasurer Proposes New Laws That Could Hinder Woke Corporate Policy
The federal government is considering new laws that could stymie the advent of “woke” corporate policy among Australia’s biggest businesses.
On Friday, Treasurer Josh Frydenberg announced consultations around possible new laws modelled on U.S. and UK legislation that will force shareholder proxy firms to be more transparent with their decision-making process.
Proxy firms work for major shareholders (superannuation funds and institutions) who own stakes in publicly listed companies.
The proxy firm carries out research and provide recommendations to shareholders on how to vote on matters at upcoming meetings, including environmental, social, and governance issues.