Shareholders deliver first strike against SCA

Chris Pash
By Chris Pash | 25 November 2024
 
Credit: Zan Lazarevic via Unsplash

Shareholders of SCA voted a first strike against the broadcaster at the AGM today.

The Remuneration Report, governing the pay of senior executievs and the fees paid to board directors, received 72.24% of votes for and 27.76% against.

Anything above 25% against is a first strike and is halfway to spilling the board of directors.

A second strike vote against a remuneration report would mean shareholders vote on whether to hold a meeting to remove the board of directors.

CEO John Kelly, appointed in May, gets a base salary of $800,000 a year with the ability to more than double that under the executive incentive plan. 

The re-election of the chairman, Heith Mackay Cruise, also didn't go smoothly, with 27.77% voting against.

By contrast, independent director Marina Go got 99.55% of the vote. 

SCA, in the middle of trying to sell its television assets so it can concentrate on audio, has been keeping a tight grip on expenses.

The company's business transformation program has permanently removed more than $40 million from SCA’s cost base. The current financial year is expected to come in below 2024 costs of $308.4 million. 

In its latest market update, SCA posted a 1.5% lift in revenue to $122.3 million in the September quarter with digital audio revenue leading the charge in a short advertising market.

Total audio revenue was up 4.8% to $100.4 million, driven by growth of 48.2% in digital and 1.1% in broadcast radio.

Shareholders at another media company, Nine Entertainment, earlier this month voted a first strike at the company's AGM. 

The shareholder vote on the media group's remuneration report, governing payment of directors and senior executives, was 37.41% against.

 

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