Mediocracy at work?

The recent AGMs of both Westpac and Woolworth’s came and passed with remarkably little stress for the incumbent boards. Whilst the Westpac Board received a rebuff of 16% against its remuneration report it was well short of the required 25% to make the Board stand up and take notice. However, the more extraordinary vote was the one taken for the remuneration report of Woolworth’s. At the Woolworth’s AGM about 50% of shareholders registered a vote and 91% of these votes were in favour of the remuneration report. This is remarkable because it was in-spite of widespread media dissatisfaction with Woolworth’s performance and the decisions of its Board. Indeed what a slap in the face for so-called proxy advisors whom recommended against the adoption of the remuneration report. So how could the vote be so positive? We discuss this vote in detail. (VIEW LINK)