Remuneration strikes matter: Just ask Macquarie! Here’s why they matter and how to get one at an AGM

At each AGM, remuneration strike is one of few notable things that may happen and make headlines. This is particularly true when a company has not had one in a while – like Macquarie (ASX:MQG) only yesterday. We thought we’d write about what remuneration strikes are, what they mean and even forecast companies where we might see it.

What is a remuneration strike and how it works

Generally a remuneration strike, more commonly just called a ‘strike’,” refers to a mechanism where shareholders of a publicly listed company express their disapproval of the company’s executive remuneration policies. At each AGM, investors vote on a company’s remuneration report outlining compensation for key management personnel – cash salaries, bonuses as well as share and option payments too.

If there is a no vote of over 25%, the company receives a ‘first strike’. If the same thing happens a year later, there must then be a vote to decide whether or not company directors must stand for re-election. And if this ‘spill vote’ passes (over 50% of eligible votes), a meeting must be held within 90 days with the directors standing for re-election.

If you want to get rid of board directors faster, there are mechanisms available such as the s.249D notice. The main purpose of a remuneration strike is to give shareholders a voice when it comes to executive remuneration. Shareholders are the owners of the company and have a vested interest in ensuring that executive pay aligns with the company’s performance and shareholder returns.

Remuneration strikes also serve as a way to address any potential issues of excessive or unjustifiable executive pay, which can lead to negative effects on the company’s overall performance and reputation.

What is the impact

A remuneration strike can have significant consequences for the company and its executives. A strike can lead to public scrutiny and damage the company’s reputation. Inevitably, it will result in changes to executive pay packages or even the removal of certain executives. And it may cause an impact on the share price – something proven by academic research.

In addition, a remuneration strike can also highlight the need for better communication and engagement between the company’s executives and its shareholders. It serves as a reminder that executive pay should be aligned with shareholder interests and overall company performance.

Macquarie becomes a famous case study

On July 24, 2025, Macquarie suffered a strike with just over 25% voting against its remuneration report. Investors were not happy about blunders and the lack of effort to dock executive pay as a consequence. In May, ASIC alleged Macquarie misreported millions of short sales from 2009 to 2024. And this is the fourth ASIC action in 12 months, with the last 3 resulting in strict conditions on its financial services license.

Proxy firms CGI Glass Lewis and Ownership Lewis condemned Macquarie and recommended investors vote against the remuneration. The mere recommendation was a big blow, leading to speculation that the first strike would happen. And sure enough, it did. The AFR Chanticleer column declared it was ‘big blow’ for Glenn Stevens and Shemara Wikramanayake. The pair tried to convince the meeting things were changing in that CFO Alex Harvey departed after 30 years and she had discussed things with investors.

And yet, ultimately the model that gave the bank the term the ‘Millonaires’ Factory’ was described by Wikramanayake as,’ So fundamental to how we have delivered value for 56 years to our shareholders by ensuring alignment in the staff outcomes with shareholder outcomes and holding them accountable for delivering solutions and earnings, as well as if issues happen’. Keep in mind if this happens again next year, there’ll be a board spill.

Other case studies

The previous reporting season (i.e. Q4 of 2025 for AGMs post-FY25) was not as bad as the previous year which saw many companies cop strikes like Qantas, Fortescue, Whitehaven, Treasury Wines, Tabcorp, Fortescue  and even the ASX itself! But some in recent months have included Helia (ASX:HLI), Dicker Data (ASX:DDR), Select Harvests (ASX:SHV) and West African Resources (ASX:WAF).

But we’ll leave you with one final thing to ponder, the reason first strikes are a big shock is because they are often unexpected to the board. So just because your company isn’t listed as a candidate here – it doesn’t mean it is

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