Tabcorp faced investor backlash at AGM

Wagering giant Tabcorp was hit with investor backlash in its latest annual general meeting over a proposed increased pay packet for its executives and its planned merger with Tatts Group, local media reports.

Just over three-quarters of proxy votes were cast at the AGM in Sydney on Tuesday supporting the company’s plans to increase the pay packet of managing director David Attenborough and other executives, with 22 percent of voters against the pay increase.

The proposed pay increase was opposed by The Australian Shareholders’ Association (ASA) and several corporate governance advisers.

The voters against fell short of just three percent that is needed for a “first strike” motion against the company.

The ASA also reportedly called on Tabcorp to give shareholders a vote on the planned $11.3 billion ($8.7 billion) merger with Tatts Group, but was dismissed by Tabcorp chairman, Paula Dwyer at the AGM.

Only investors in the larger firm have the right to approve or scrap the deal.

The deal will also require approval of the competition regulator, the Australian Competition and Consumer Commission.