ISS Urges Investors to Reject ASX Remuneration Report

Institutional Shareholder Services (ISS) has recommended that investors vote against the remuneration report of the Australian Securities Exchange (ASX) at its annual meeting on October 22. The proxy adviser argues that executive bonuses are misaligned with the company's statutory results and shareholder experience, specifically noting that the bonus pool remained at 100 percent of its target despite a 23.6 percent decline in share price and underperformance compared to peers.

ISS specifically criticized bonuses awarded to former CEO Helen Lofthouse during a period of declining profits and dividends. The ASX rejected the recommendation, stating that remuneration outcomes appropriately reflect performance and accountability, including consequences already imposed in the previous fiscal year.

Other proxy advisers have taken a different stance. CGI Glass Lewis recommended that shareholders endorse the pay report, pointing to operational progress on the new Clearing House Electronic Subregister System. The dispute follows a period of increased scrutiny for the ASX regarding governance and platform outages.