Shareholders of Australia's largest media company, Nine Entertainment, have delivered a strike against its remuneration report and chief executive Matt Stanton's pay, with 34.4 per cent of investors opposing the report after the company's share price slumped 30 per cent in the past year.
The strike came at Friday’s annual general meeting, where more than a quarter of votes were also cast against Stanton's performance rights for both 2025 and 2026. Stanton's base pay was $1.6 million last financial year and his total remuneration, including bonuses, was $3 million, according to Nine's annual report.
Chair Peter Tonagh, fronting his first AGM as chair, defended Stanton's record against calls from proxy advisory firms CGI Glass Lewis and ISS, which urged investors to vote against the executive pay arrangements in part because Nine is now a smaller business after selling Domain last year.
"Our perspective as a board is the argument that we should reduce Matt's salary because he did a good job of selling a business and returning value to shareholders, and buying another one, which requires more work from him, is an argument that is not persuasive to us," Tonagh said.
The meeting was repeatedly sidetracked by complaints from retail investors, including about the limited biscuit selection on offer. One elderly investor said: "I notice in the foyer itself, all we've got is a tray of biscuits bought from local Metro and nothing more. I mean, things are not aligning, and you're saving money by holding in these cramped little quarters. So that surely be an incentive to give something a bit more generously."
Another investor said the company had a "lousy reputation" for its hospitality spread, failing to provide sandwiches or sushi.
Tonagh said the company remained undervalued based on its diversified assets, which include the publishing business housing The Australian Financial Review, The Sydney Morning Herald and The Age, streaming service Stan, QMS and the Nine Network. "I'm asked regularly to explain this decline, and my response is always the same. In simple terms, I can't speak to the market and the vagaries of it. I can tell you that my focus, along with our team, is on driving the performance of our business," he said.
Nine's shares jumped 8 per cent to $0.80 on Friday after the meeting and trading update, where the company said it was on track to exceed its cost savings targets by $20 million to a total of $180 million, and expected to grow revenue and earnings in the current financial year.
Nine was last hit with a strike two years ago, when then-acting chief executive Stanton and former chair Catherine West were punished for poor share price performance and lingering questions over the culture of the company's television news division. Since then, the company sold its 60 per cent stake in Domain and spent $850 million purchasing QMS, a price queried by investors. The company's share price decline has been cushioned by 97-year-old billionaire Bruce Gordon's company Birketu upping its stake to 31.2 per cent.
Analysis
Why This Matters
- The strike signals significant investor discontent with Nine's executive pay and strategy, following a 30 per cent share price slump over the past year.
- A second consecutive strike next year would trigger a vote on whether to force the board to stand for re-election, putting the company's governance under further scrutiny.
- The outcome reflects broader investor concerns about whether Nine's transformation, including the Domain sale and QMS purchase, is delivering value.
Background
Nine Entertainment is one of Australia's largest media companies, owning newspapers, a streaming service, an outdoor advertising firm and the Nine Network. The company has been reshaping its portfolio, selling its stake in Domain and acquiring QMS, while facing questions about its share price performance and workplace culture. Executive pay strikes are a formal shareholder protest mechanism under Australian corporate governance rules.
Key Perspectives
Peter Tonagh (Nine chair): Argues Stanton should not be punished for selling Domain and buying QMS, saying the argument that his salary should be reduced because he did a good job is "not persuasive" to the board.
CGI Glass Lewis and ISS (proxy advisory firms): Urged investors to vote against the executive pay arrangements, in part because Nine is now a smaller business after selling Domain.
Retail investors: Complained about the company's hospitality, with one calling its reputation "lousy" over the biscuit selection, and raised questions about the meeting's location and the use of AI for finance audits.
What to Watch
- Whether next year's remuneration vote draws another strike, which would trigger a board spill vote.
- Whether Nine delivers on its forecast revenue and earnings growth and the increased $180 million cost savings target.
- The influence of Bruce Gordon's increased 31.2 per cent stake on any potential corporate moves.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedNine Entertainment received a second strike on its executive pay arrangements.Brisbane Times - Latest News: “The company’s remuneration report was hit with a second strike in three years.”
- Supported34.4 per cent of investors opposed Nine’s remuneration report.Brisbane Times - Latest News: “Nine told the market 34.4 per cent of investors opposed the remuneration report”
- SupportedMore than a quarter of votes were cast against Matt Stanton’s performance rights for both 2025 and 2026.Brisbane Times - Latest News: “while more than a quarter of votes were also cast against Stanton’s performance rights for both 2025 and 2026.”
- SupportedNine’s share price slumped 30 per cent in the past year.Brisbane Times - Latest News: “after the company’s share price slumped 30 per cent in the past year.”
- SupportedNine is Australia’s largest media company.Brisbane Times - Latest News: “Shareholders of Australia’s largest media company, Nine Entertainment, have delivered a strike against its remuneration report”
- SupportedPeter Tonagh said the board did not find the argument for reducing Stanton’s salary persuasive.Brisbane Times - Latest News: ““Our perspective as a board is the argument that we should reduce Matt’s salary because he did a good job of selling a business and returning value to shareholders, and buying another one, which requires more work from him, is an argument that is not persuasive to us,” Tonagh said”
- SupportedAn elderly investor complained that the AGM offered only a tray of biscuits from local Metro and said this was an incentive to give more generously.Brisbane Times - Latest News: ““I notice in the foyer itself, all we’ve got is a tray of biscuits bought from local Metro and nothing more. I mean, things are not aligning, and you’re saving money by holding in these cramped little quarters. So that surely be an incentive to give something a bit more generously,” one of the elderly investors said.”
- SupportedAnother investor described Nine’s hospitality spread as having a “lousy reputation” and complained it lacked sandwiches or sushi.Brisbane Times - Latest News: “He was then backed up by another investor, who said the company had a “lousy reputation” for its hospitality spread for investors, failing to provide sandwiches or sushi.”
- SupportedStanton’s base pay was $1.6 million and his total remuneration, including bonuses, was $3 million last financial year, according to Nine’s annual report.Brisbane Times - Latest News: “Stanton’s base pay was $1.6 million last financial year and his total remuneration, including bonuses, was $3 million, according to Nine’s annual report.”
- SupportedTonagh said he could not speak to the market’s vagaries and that his focus was driving the business’s performance.Brisbane Times - Latest News: ““I’m asked regularly to explain this decline, and my response is always the same. In simple terms, I can’t speak to the market and the vagaries of it. I can tell you that my focus, along with our team, is on driving the performance of our business,” Tonagh said.”
- SupportedNine shares rose 8 per cent to $0.80 on Friday after the meeting and trading update.Brisbane Times - Latest News: “Shares jumped 8 per cent to $0.80 on Friday after the meeting and trading update”
- SupportedNine said it was on track to exceed its cost-savings targets by $20 million, reaching $180 million in total, and expected revenue and earnings growth in the current financial year.Brisbane Times - Latest News: “the company said it was on track to exceed its cost savings targets by $20 million to a total of $180 million. It also said it expected to grow revenue and earnings in the current financial year.”