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Arrium narrowly avoids first strike against its remuneration package
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Tuesday, 20 Nov 2012
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AAP reported that steelmaker Arrium has narrowly avoided a first strike against its executive remuneration package, as its chairman urged frustrated shareholders to keep faith in the company's mining led future.

Chairman Mr Peter Smedley said he was willing to engage with any suitor offering to acquire the company but that the recent AUD 1.2 billion or 88 cents a share offer by Hong Kong based Noble Group and South Korea's POSCO was not a fair price.

Some shareholders criticized the board and management at the company's annual general meeting about the woeful performance of its share price, noting executive salaries continued to rise.

Arrium's share price was just over three dollars in February 2011, and closed up 0.5 cents on the day at 72 cents on November 19th 2012. The shareholders' meeting on Novem 19th 2012 culminated in a significant protest vote of more than 19.6% against the remuneration report. However, this was below the first strike threshold of 25% that can lead to a board spill if the vote is above the threshold two years in a row.

Mr Smedley rejected the view of proxy adviser CGI Mr Glass Lewis that chief executive Mr Geoff Plummer's salary of AUD 2 million plus was higher than similar sized companies, saying Arrium was more complex due to its diverse mining, consumables and steel making segments.

Mr Plummer told reporters after the annual general meeting that he was confident of near term improvements in the iron ore and steel markets in China now that its leadership transition was over. He was also hope of improvements in the mining consumables segment with markets hoping for stronger economic growth.

Arrium is Australia's second biggest steel maker behind BlueScope.

Source - AAP


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