IAG slashes $6.9m from execs

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

Preliminary results show 57.15 per cent of votes going against the proposed report.

Proxy advisors had urged investors to knock back the report, with IAG receiving a flurry of shareholder responses during the annual general meeting 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 see the insurer before the courts.

IAG chairman Elizabeth Bryan AM in her opening remarks 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 Byran said total adjustments were $6.9m to date, including $3.5m relating to decisions made by the board in August 2020.

Ms Bryan implored investors to “not lose sight” of the “successful business that made an insurance profit”.