Cabcharge has been forced to review its executive remuneration packages or face a board spill after shareholders refused the board's offering at the company's AGM.

 

Chairman Reg Kermode railed against proxy advisors, bemoaning the fact that proxy advisors had become de facto decision makers for institutional investors.

 

"I have never seen anything as ridiculous as investors having to be "guided" by the "misguided on how to vote. It must be humiliating to be unable to think for oneself and to invest and not have the common sense to be able to make a decision," Mr Kermode said in his address.

 

Over 40 per cent of investors baulked at the remuneration package, voting against the proposal. Under the Federal Government's corporate governance reform, only 25 per cent of investors need vote against the remuneration package in order to knock it back. Under the law, if the proposed remuneration package is voted against again in under two years, the board will be spilled.