Australian Pension Group Rejects Mineral Resources Pay Proposal

Wedoany.com Report-Nov 20,   A group representing Australia’s A$3.9 trillion ($2.5 trillion) pension industry has recommended its members vote against the remuneration plan of scandal-hit Mineral Resources Ltd. at the company’s annual general meeting on Thursday. 

The Australian Council of Superannuation Investors wants to clarify what directors knew about Mineral Resources’ investment in industrial property that was part-owned by Managing Director Chris Ellison. The Perth-based miner bought 49% of a company linked to Ellison that owned the property, the Australian Financial Review reported last week, the latest in a series of scandals that has seen the company lose more than half its value from a peak in May.

“Investors want to know who signed off on that transaction,” ASCI’s Executive Manager of Stewardship Ed John said in an emailed statement. “The board must respond on this issue before the AGM.”

Ellison has been under scrutiny after the company that he founded launched an internal inquiry into what the board described as “profoundly disappointing” conduct. Separate investigations were launched by the Australian Securities and Investments Commission, the corporate watchdog, as well as the Australian Securities Exchange.

One of Australia’s largest pension funds, A$88 billion HESTA, has put the company on its watch list, which means it is subject to closer monitoring, and has been engaging directly with it regarding its recent governance failures, Chief Executive Officer Debby Blakey said earlier this month.