Online retail company Kogan.Com Ltd. (ASX:KGN) has faced the first strike against its remuneration report and a powerful protest vote against plans to issue options worth more than $100 million to co-founders Ruslan Kogan and David Shafer.
On 20 November, exceeding the 25% threshold required to spark the first strike, a considerable 43.8% of stakeholders voted against the remuneration report. Also, 42.6% were against the options grants, which needed 50% approval.
It should be noted that proxy advisers had asked the shareholders to vote against the remuneration report and issue of the options as the package was way too generous. The proxy advisers also warned that would ask the shareholders to vote against the re-election of non-executive directors in future if Kogan.Com reimbursed the founders – Kogan and Shafer with the same amount in cash or shares.
Meanwhile, the stock KGN traded down by 4.53% at $17.50 on 20 November 2020.