Macquarie CEO pay riles investors as long-standing finance chief exits
In a quarterly update published on Thursday, ahead of its annual meeting, Stevens and Macquarie chief executive Shemara Wikramanayake also announced that company chief financial officer Alex Harvey was stepping down after a 28-year career at Macquarie.
The company also said that its profits were down in its first quarter. But investors have been more interested in Macquarie's executive pay and its record on compliance, which has been in the spotlight after the Australian Securities and Investments Commission (ASIC) launched legal action against the bank in May, alleging 'repeated and systemic' misleading conduct over a failure to report short sales.
Macquarie shares slumped 4.4 per cent in early trade.
It was the watchdog's fourth regulatory action against Macquarie in just over a year. Earlier, in May, ASIC also slapped additional licence conditions on Macquarie Bank, citing several compliance failures relating to futures dealing and over-the-counter derivatives.
Stevens said on Thursday that the ASIC matter on short-selling was before the courts so he was limited in what he could say, but that any remuneration effects from the case would be reflected in the coming financial year. He also vowed to take on the concerns of shareholders, while conceding that a 'significant minority' felt the board should have done more on executive pay.
'I also acknowledge that, while Macquarie's remuneration system is strongly supported by shareholders, a number of shareholders have the view that the board has not adequately reflected risk shortcomings in our FY25 decisions,' Stevens said.
'The board hears your message and will reflect carefully on addressing those concerns.'
Macquarie's remuneration report, published earlier this year, said it had taken into account 'risk and regulatory matters', particularly ASIC's licence conditions, and this had been reflected in the profit share awarded to Wikramanayake and the chief of Macquarie Bank Limited, Stuart Green.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
33 minutes ago
- Sydney Morning Herald
The 33-year-old who is about to become a billionaire
Figma's Dylan Field has already cemented a billion-dollar fortune with this week's planned initial public offering. But he could be looking at another 10-figure payday, thanks to a tranched compensation package similar to Elon Musk's. Field, 33, the design software company's co-founder, will own about 11 per cent of San Francisco-based Figma. That's worth $US1.6 billion ($2.5 billion) at $US30 a share, the low end of the price range signalled in a Monday filing, according to the Bloomberg Billionaires Index. He also controls all the votes for co-founder Evan Wallace's 27 million shares, worth about $US800 million at that price. A spokesperson for Figma declined to comment. The IPO, which has drawn orders for almost 40 times the available shares, is expected to start trading on Thursday in New York. The pair started Figma in 2012 after Field dropped out of Brown University and accepted a Thiel Fellowship, which pays students to leave college and begin a business. Their vision was to bring collaborative design tools to the internet. The company's growth exploded among both designers and developers, with customers including Microsoft, Netflix and Zoom Communications, according to the firm's website. In 2022, Adobe tried to buy the startup for $US20 billion, which would have given Field a $US2 billion fortune. The deal was cancelled a year later along with any personal gains for Field. Loading But Field's net worth is set to grow thanks to millions of restricted stock units vesting in conjunction with the IPO, as well as a 2025 pay deal that moves the goal posts — and the potential rewards — higher. Moon-shot money Approved last month, the new package sets aside 14.5 million shares for a performance-based plan that would award seven tranches of stock. The first tranche — 2.2 million shares that would be worth $US130 million — would kick in once Figma's 60-day average stock price tops $US60. If the shares hit the highest hurdle of $US130, the total package would be worth about $US1.9 billion, according to Bloomberg calculations. The rewards won't be immediate as any vested shares will be released over a seven-year period, according to a regulatory filing.
The Age
33 minutes ago
- The Age
The 33-year-old who is about to become a billionaire
Figma's Dylan Field has already cemented a billion-dollar fortune with this week's planned initial public offering. But he could be looking at another 10-figure payday, thanks to a tranched compensation package similar to Elon Musk's. Field, 33, the design software company's co-founder, will own about 11 per cent of San Francisco-based Figma. That's worth $US1.6 billion ($2.5 billion) at $US30 a share, the low end of the price range signalled in a Monday filing, according to the Bloomberg Billionaires Index. He also controls all the votes for co-founder Evan Wallace's 27 million shares, worth about $US800 million at that price. A spokesperson for Figma declined to comment. The IPO, which has drawn orders for almost 40 times the available shares, is expected to start trading on Thursday in New York. The pair started Figma in 2012 after Field dropped out of Brown University and accepted a Thiel Fellowship, which pays students to leave college and begin a business. Their vision was to bring collaborative design tools to the internet. The company's growth exploded among both designers and developers, with customers including Microsoft, Netflix and Zoom Communications, according to the firm's website. In 2022, Adobe tried to buy the startup for $US20 billion, which would have given Field a $US2 billion fortune. The deal was cancelled a year later along with any personal gains for Field. Loading But Field's net worth is set to grow thanks to millions of restricted stock units vesting in conjunction with the IPO, as well as a 2025 pay deal that moves the goal posts — and the potential rewards — higher. Moon-shot money Approved last month, the new package sets aside 14.5 million shares for a performance-based plan that would award seven tranches of stock. The first tranche — 2.2 million shares that would be worth $US130 million — would kick in once Figma's 60-day average stock price tops $US60. If the shares hit the highest hurdle of $US130, the total package would be worth about $US1.9 billion, according to Bloomberg calculations. The rewards won't be immediate as any vested shares will be released over a seven-year period, according to a regulatory filing.
The Advertiser
2 hours ago
- The Advertiser
US central bank leaves interest rates unchanged
The US Federal Reserve has left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision on Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the US central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will affect inflation and the broader economy. So far the duties have lifted costs of some goods such as appliances, furniture and toys and overall inflation has risen slightly although less than many economists had expected. There were some signs of splits in the Fed's ranks: governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs while nine officials, including Powell, favoured standing pat. It is the first time in more than three decades that two of the seven Washington DC-based governors have dissented. One official, governor Adriana Kugler, was absent and did not vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly urged the central bank to reduce borrowing costs. The US Federal Reserve has left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision on Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the US central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will affect inflation and the broader economy. So far the duties have lifted costs of some goods such as appliances, furniture and toys and overall inflation has risen slightly although less than many economists had expected. There were some signs of splits in the Fed's ranks: governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs while nine officials, including Powell, favoured standing pat. It is the first time in more than three decades that two of the seven Washington DC-based governors have dissented. One official, governor Adriana Kugler, was absent and did not vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly urged the central bank to reduce borrowing costs. The US Federal Reserve has left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision on Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the US central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will affect inflation and the broader economy. So far the duties have lifted costs of some goods such as appliances, furniture and toys and overall inflation has risen slightly although less than many economists had expected. There were some signs of splits in the Fed's ranks: governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs while nine officials, including Powell, favoured standing pat. It is the first time in more than three decades that two of the seven Washington DC-based governors have dissented. One official, governor Adriana Kugler, was absent and did not vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly urged the central bank to reduce borrowing costs. The US Federal Reserve has left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision on Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the US central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will affect inflation and the broader economy. So far the duties have lifted costs of some goods such as appliances, furniture and toys and overall inflation has risen slightly although less than many economists had expected. There were some signs of splits in the Fed's ranks: governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs while nine officials, including Powell, favoured standing pat. It is the first time in more than three decades that two of the seven Washington DC-based governors have dissented. One official, governor Adriana Kugler, was absent and did not vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly urged the central bank to reduce borrowing costs.
