AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Shareholders challenge Nine Entertainment's executive pay with a first strike.
- Cultural issues and weak ad market put pressure on Nine's leadership.
- Nine looks to restructure, with plans for new leadership appointments.
Nine Entertainment Co. Holdings Ltd. (ASX:NEC), a prominent Australian media company known for the Nine Network, streaming service Stan, and popular radio stations such as 2GB and 3AW, recently faced a significant shareholder protest regarding executive pay. During its annual general meeting, the company received a "first strike" on its remuneration report, with a substantial 37.4% of proxy votes cast against it. This strike reflects shareholder dissatisfaction with the company’s leadership decisions, which have come under scrutiny following the release of a workplace culture report highlighting serious concerns.
Chairman Catherine West, who assumed her role in June, received a 17.1% vote against her re-election, illustrating shareholder concerns about the board’s direction. Andrew Lancaster, representing Nine's largest shareholder and media mogul Bruce Gordon, also faced disapproval, with an 8.2% vote against him. These votes highlight broader dissatisfaction with the board’s handling of key issues affecting the company.
The company has been dealing with the repercussions of an independent report on workplace culture, which revealed that half of Nine’s staff reported witnessing or experiencing power abuses, bullying, and discrimination. This report has created challenges for Nine as it works to address internal cultural problems while managing operational performance. As a result, the company is actively searching for a new chief executive officer and two additional board members to reinforce its leadership team.
Nine’s share price has declined by 45% this year, reaching $1.10, which adds pressure on the company to demonstrate stability and strategic direction. CEO Matt Stanton shared a trading update, noting that the advertising market remains weak, impacting Nine’s financial outlook. To address these challenges, Stanton plans to accelerate efforts to transform Nine’s operating model, aiming to improve efficiency and navigate the current market downturn.
While Nine’s leadership remains hopeful for a better second half of fiscal year 2025, Stanton acknowledged that there have been no visible signs of recovery in the advertising sector thus far. This economic backdrop, coupled with cultural issues and shareholder concerns, underscores the significant challenges Nine faces as it works to restore investor confidence and stabilize its operations.
Nine’s efforts to address both operational and cultural issues will be closely watched by shareholders, especially as the company moves forward with new leadership and strategies aimed at navigating these multifaceted challenges. The company's response and strategic shifts in the coming months will be key to determining its resilience in the competitive media landscape.
