IAG board gets strike one from investors

ATTEMPTS by insurance giant IAG to nix $6.9m in executive bonuses have not saved the board from an investor strike on the company’s remuneration policy.

At the annual general meeting on Friday, 57.25 per cent of votes went against the proposed report.

Proxy advisers had urged investors to knock back the report, with IAG receiving a flurry of shareholder responses during the AGM bemoaning a string of failures at the company.

This includes the period the Australian Securities and Investments Commission alleges IAG failed to pass on discounts to customers, which now has the insurer before the courts.

IAG chairman Elizabeth Bryan said the board “held to the principle that senior executives should be held responsible for failures on their watch” and has slashed deferred bonuses.

Ms Bryan said total adjustments were $6.9m to date, including $3.5m relating to decisions made by the board in August 2020.

IAG shares closed 1.4 per cent up at $5.11.