URGENT UPDATE: Australia’s largest investment bank, Macquarie Bank, has been hit with its first shareholder strike, a clear message of dissatisfaction over executive pay. During the annual general meeting held on Thursday, 25.43 percent of investors voted against the firm’s remuneration report, narrowly surpassing the required threshold of 25 percent for such a strike.
This development comes as Macquarie reported a staggering $3.7 billion profit for the fiscal year 2024/2025. However, the bank’s decisions regarding executive compensation and compliance have drawn intense scrutiny, particularly after the Australian Securities and Investments Commission (ASIC) initiated legal action against the firm in May for the fourth time in just over a year.
At the heart of this controversy, ASIC alleges that Macquarie failed to report up to $1.5 billion in short sales over a 14-year period, raising serious concerns about the stability of Australia’s financial landscape. Glenn Stevens, former Reserve Bank governor and current chair of Macquarie’s board, acknowledged investor concerns regarding remuneration decisions at the meeting.
“I would acknowledge that while our remuneration system is strongly supported by shareholders, a number of shareholders have been of the view that the board did not adequately reflect shortcomings in our decisions on remuneration,” said Stevens.
In a related push, shareholders also voted on a resolution urging Macquarie to enhance transparency regarding its dealings with fossil fuel companies. Significant support came from New York City Pension Funds, the UK’s Church of England, and Norway’s largest private pension fund, KLP, with 35 percent of investors backing the call.
CEO of environmental group Market Forces, Will van de Pol, described the outcome as a significant reprimand for the bank, stating, “Investors holding $17 billion in Macquarie shares have demanded the company comes clean on its support for polluting gas expansion, leaving its green reputation in ruins.”
Protestors gathered outside Macquarie’s meeting in Sydney’s CBD, showcasing a four-meter-tall mock gas flare to highlight the bank’s funding of the $100 million Beetaloo Basin gas project in the Northern Territory. Kyle Robertson, a campaigner from Market Forces, warned, “A scenario where we warm by catastrophic levels, which is what projects like this will ensure, is going to be disastrous for the community.”
Despite the shareholder pushback, Glenn Stevens advised rejecting the climate resolution, asserting that the company has consistently responded to climate change challenges and accepted prevailing scientific evidence. He emphasized, “We think that simply shutting down oil and gas today is not viable.”
As tensions rise over executive compensation and environmental responsibility, all eyes will be on Macquarie Bank in the coming weeks. Investors and community members alike are demanding accountability and transparency, with the future of the bank’s reputation hanging in the balance.
For ongoing updates on this developing story, stay tuned.
