TechnologyOne receives overwhelming support in favour of its stance against proxy advisors at AGM
TechnologyOne today held its Annual General Meeting (AGM), receiving overwhelming support in favour of the resolutions set out in its Notice of Meeting.
The resolutions included re-election of Mr Richard Anstey, Non-Executive Director; Adoption of its Remuneration Report; and an Increase in Director’s fee pool, to support proposed expansion of the company’s board.
There was passionate support from shareholders criticising the report released by ISS Proxy Advisory Services dated February 2, 2016 and their recommendation to vote against TechnologyOne’s Remuneration Report.
Shareholders expressed their support of TechnologyOne's unique business model and its continued high performance, and encouraged the company to continue to drive its operations in this manner and ignore the proxy advisors.
“Today we saw overwhelming agreement among shareholders that taking a proven remuneration framework for a business that consistently outperforms the ASX and adapting it to fit a 'one size fits all' model promoted by proxy advisors is a distraction and potentially high risk,” said TechnologyOne’s Executive Chairman, Adrian Di Marco.
“In particular, shareholders were vocal about their disappointment that TechnologyOne’s corporate governance received the lowest rating by ISS. This is in spite of the fact that TechnologyOne has never experienced any governance issues.
“TechnologyOne has been one of the best performing stocks on the ASX in recent years and has consistently delivered strong results since it listed on the ASX in 1999. We have always maintained strong corporate governance, and the remuneration framework we have employed has been highly successful in delivering these outstanding results,” Mr Di Marco continued.
“It is disappointing to see the inflexibility of proxy advisors like ISS, who have recommended shareholders vote against our resolutions without taking the time to understand our business.
“These advisors have no accountability to ensure they have properly researched the company they are advising on, but have a disconcerting amount of influence over shareholders.
“I have significant concerns about this new area of proxy advisors, as they are unregulated and in need of significant review and scrutiny. For this reason, it is risky for shareholders to blindly follow the recommendations made by these proxy advisors.”
Mr Di Marco added: “Last year, we engaged a division within ISS called ISS Corporate Solutions to work with us to revise our Remuneration Report, following last year’s recommendations from proxy advisors. This proved to be a huge cost and distraction to the business, and made no impact in appeasing the advisors.
“So we have drawn a line in the sand. Ultimately, we are accountable to our shareholders and we will continue to focus on driving operational performance, rather than be distracted by administrative busywork.”
- Ends -
TechnologyOne (ASX:TNE) is Australia's largest enterprise software company and one of Australia's top 200 ASX-listed companies, with offices across six countries. We create solutions that transform business and make life simple for our customers. We do this by providing powerful, deeply integrated enterprise software that is incredibly easy to use. Over 1,000 leading corporations, government departments and statutory authorities are powered by our software.
We participate in only eight key markets: government, local government, financial services, education, health and community services, asset intensive industries, project intensive industries and corporates. For these markets we develop, market, sell, implement, support and run our preconfigured solutions, which reduce time, cost and risk for our customers.
For 28 years, we have been providing our customers enterprise software that evolves and adapts to new and emerging technologies, allowing them to focus on their business and not technology. Today, our software is available on the TechnologyOne Cloud and across smart mobile devices.
For further information please visit: TechnologyOneCorp.com