Latest news with #AlexHarvey
Business Recorder
6 days ago
- Business
- Business Recorder
Australian shares flat as tech, energy offset losses in miners, gold stocks
Australian shares were little changed on Thursday, as gains in tech and energy stocks offset losses in gold and mining counters, while Fortescue jumped on record quarterly shipments and Macquarie fell after posting a drop in first-quarter profit. The S&P/ASX 200 index was flat at 8,735.90 points as of 0028 GMT, after rising 0.7% on Wednesday. Energy stocks added 0.3%, with Woodside Energy up 1.5%. Oil prices advanced on hopes that progress in talks between the U.S. and its key trade partners ahead of the August 1 deadline would ease pressure on the global economy, while a drop in U.S. crude stocks last week signalled solid demand. Technology stocks rose 0.5%, mirroring gains in overseas peers. ASX-listed shares of Xero grew 0.3%, while those of NEXTDC rose 0.8%. Bucking the trend, gold stocks shed more than 2.5% to lead the benchmark lower, as bullion prices weakened. Northern Star Resources dropped 3%, while Genesis Minerals lost 1.3%. Financials slid 0.2%, with Macquarie slipping 5% after reporting a first-quarter net profit decline and announcing the departure of Chief Financial Officer Alex Harvey. The top investment bank was the biggest laggard on the sub-index. Miners eased 0.2%, as iron ore prices fell. Rio Tinto dropped 0.4%. In contrast, Fortescue gained more than 5% after fourth-quarter shipments hit the top end of its fiscal 2025 guidance. In company news, Lynas Rare Earths reported fourth-quarter revenue beat. The world's largest producer of rare earth minerals outside China said it had entered into a magnet manufacturing deal with Korea's JS Link. Shares grew more than 4%. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.2% to 12,823.99.
News.com.au
6 days ago
- Business
- News.com.au
Macquarie Group CFO exits amid investor backlash over executives' eye-watering pay
Macquarie Group's long-serving chief financial officer will leave the company, as the investment bank faces a shareholder backlash for not cutting executives' eye-watering pay packets despite a series of compliance blunders. Alex Harvey will depart from the bank after 28 years in December, the company announced in its first-quarter update ahead of its annual general meeting in Sydney on Thursday. His departure comes as the bank faces the prospect of its first-ever strike — when 25 per cent or more of shareholders vote against a company's remuneration report — after two influential proxy advisory firms raised concerns Macquarie had not done enough to dock executive pay following actions by financial regulators. In May, the Australian Securities and Investments Commission (ASIC) filed proceedings against Macquarie Group in the NSW Supreme Court alleging it engaged in misleading conduct by misreporting millions of short sales to the market operator for over 14 years between 2009 and 2024. It marked the fourth ASIC action against Macquarie Group entities since last year. ASIC had already imposed strict conditions on Macquarie's financial services license earlier this year in response to compliance failures in its derivatives trading arm. Proxy firms CGI Glass Lewis and Ownership Lewis, which advise institutional investors on how they vote, both criticised Macquarie for failing to adequately slash executive pay, according to their recommendations circulated ahead of Thursday's AGM and seen by The Australian Financial Review. Macquarie Group chief executive Shemara Wikramanayake, Australia's highest-paid CEO, was awarded $24.03 million in the year ended March 31, down from $25.3 million a year earlier. Ownership Matters said measures to reduce how much profit flowed to Ms Wikramanayake and Macquarie Bank boss Stuart Green did not 'appear sufficient' given the long list of regulatory issues, while Glass Lewis said there had been an 'inadequate response and transparency on regulatory and risk-related matters', according to the report. 'The CEO's FY25 profit share of $22.5 million was circa 5 per cent lower than in FY24 despite a 5 per cent increase in profit, indicating her profit share was reduced by up to $2.5 million; only one other disclosed executive appears to have experienced a decline in profit share in FY25 relative to FY24 as a response to the compliance issues highlighted by ASIC,' Ownership Matters' report said, per The AFR. A number of major international investors had already indicated they would vote against the remuneration report, including Californian pension funds CalPERS and CalSTRS as well as state investment vehicle SBA Florida. Today Macquarie Group Ltd shares have dropped by 4.63 per cent at the time of writing. In his speech to investors, Macquarie Chairman Glenn Stevens defended the bank's 'risk culture'. 'Risk culture is central, and a great deal of work has been done over the past several years to respond to changes in our business operations and the expectations of regulators and the communities in which we operate,' he said. 'Where shortcomings are identified, the Board holds staff accountable, seeks to incentivise future improvement and reflects on what the issue might tell us about the organisation's culture.' Mr Stevens insisted 'there were remuneration impacts for several executive committee members and others, and these impacts also incorporated incentives for all senior executives to resolve the issues'. 'The company is also directing significant resources into a range of remediation activities, as well as continuing to invest in programs to further reinforce our frameworks, systems and controls.' Mr Stevens added 'so far as remuneration impacts are concerned, this will be an FY26 matter, about which the board will come to a view over the period ahead'. But he acknowledged 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'. 'The Board hears your message and will reflect carefully on addressing those concerns,' he said. A number of large investors have also pushed resolutions for Thursday's AGM that would force Macquarie to beef up disclosures related to its exposure to fossil fuel companies and projects. Mr Stevens urged shareholders to vote against the proposed resolutions. He said Macquarie had been 'consistent in our response to climate change' and 'accept the best available science'. 'We think the transition to decarbonised energy must be managed and orderly,' he said. 'Simply shutting down oil and gas is not viable. We recognise the reality that, even as net zero objectives are pursued, the world will need carbon-based energy for quite some time. 'These principles will guide activity as Macquarie's climate strategy and disclosures continue to evolve to meet the needs of clients and investors, and the requirements of governments and regulators across markets, including efforts towards more consistent disclosure.' His comments came as Macquarie reported a fall in net profit contribution in the three months to June 30 compared with the prior corresponding period. The company said improved performance in its Banking and Financial Services (BFS) and Macquarie Capital (MacCap) divisions were more than offset by lower contributions from Macquarie Asset Management (MAM) and Commodities and Global Markets (CGM). The group had a capital surplus of $7.6 billion as of June 30. 'Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams,' the bank said in a statement. 'This is due to deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in the operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.' Announcing the departure of Mr Harvey, Macquarie noted he had played a 'key role in driving the global growth of the group'. He will be succeeded by deputy CFO Frank Kwok.
Mint
6 days ago
- Business
- Mint
Australian shares flat as tech, energy offset losses in miners, gold stocks
July 24 (Reuters) - Australian shares were little changed on Thursday, as gains in tech and energy stocks offset losses in gold and mining counters, while Fortescue jumped on record quarterly shipments and Macquarie fell after posting a drop in first-quarter profit. The S&P/ASX 200 index was flat at 8,735.90 points as of 0028 GMT, after rising 0.7% on Wednesday. Energy stocks added 0.3%, with Woodside Energy up 1.5%. Oil prices advanced on hopes that progress in talks between the U.S. and its key trade partners ahead of the August 1 deadline would ease pressure on the global economy, while a drop in U.S. crude stocks last week signalled solid demand. Technology stocks rose 0.5%, mirroring gains in overseas peers. ASX-listed shares of Xero grew 0.3%, while those of NEXTDC rose 0.8%. Bucking the trend, gold stocks shed more than 2.5% to lead the benchmark lower, as bullion prices weakened. Northern Star Resources dropped 3%, while Genesis Minerals lost 1.3%. Financials slid 0.2%, with Macquarie slipping 5% after reporting a first-quarter net profit decline and announcing the departure of Chief Financial Officer Alex Harvey. The top investment bank was the biggest laggard on the sub-index. Miners eased 0.2%, as iron ore prices fell. Rio Tinto dropped 0.4%. In contrast, Fortescue gained more than 5% after fourth-quarter shipments hit the top end of its fiscal 2025 guidance. In company news, Lynas Rare Earths reported fourth-quarter revenue beat. The world's largest producer of rare earth minerals outside China said it had entered into a magnet manufacturing deal with Korea's JS Link. Shares grew more than 4%. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.2% to 12,823.99. (Reporting by Roshan Thomas in Bengaluru; Editing by Sumana Nandy)
Reuters
6 days ago
- Business
- Reuters
Macquarie faces shareholder backlash over executive pay as CFO steps down
July 24 (Reuters) - Macquarie Group ( opens new tab, the employer of Australia's best-paid CEO, said on Thursday it will review its executive compensation following a regulatory compliance lawsuit, as some shareholders prepare to vote against its salary plans at its annual meeting. Chief Financial Officer Alex Harvey will also retire, the company said, an unexpected development which deprives it of one possible successor to current leader Shemara Wikramanayake who started in 2018. Shares tumbled as much as 5% in early trade to A$214, their biggest intraday percentage drop in three months, and underperformed a 0.2% gain on the broader benchmark (.AXJO), opens new tab. Chairman Glenn Stevens said on a media call the non-binding remuneration vote at Thursday's AGM "does appear to be quite close." When asked about potential shareholder opposition, Stevens said: "It was always likely that there were going to be some observers who were going to say 'you should have gone more one way or the other'. I find it a little bit disappointing how many feel that, but it is what it is and we have to hear that message." The vote can be defeated with 25% opposition, and if an Australian company receives two "strikes" in consecutive years, shareholders can hold another vote on whether to dismiss the entire board. The leadership changes and pay review come as Australia's corporate regulator ASIC has sued Macquarie, alleging it misreported up to A$1.5 billion worth of short sales over 15 years, misleading the market and violating post-financial crisis transparency rules. Stevens said Macquarie is focusing on "remediation of regulatory issues, and associated strengthening of the company's risk culture," adding that "where shortcomings are identified, the board holds staff accountable, seeks to incentivize future improvement and reflects on what the issue might tell us about the organization's culture." CEO Shemara Wikramanayake earned A$30 million in 2024, making her the highest paid chief executive among ASX 100 companies and the only woman in Australia's top 20 highest paid executives, according, opens new tab to the Australian Council of Superannuation Investors. Separately, Macquarie reported a decline in first-quarter net profit due to lower contributions from its asset management arm and commodities and global markets unit. The company did not disclose specific profit figures in its quarterly trading update. The asset management division experienced softer performance primarily due to timing of investment-related income, while commodities recorded lower net interest and trading income in North American Gas and Power, it added.
Yahoo
6 days ago
- Business
- Yahoo
Macquarie's quarterly profit falls, CFO Harvey decides to step down
(Reuters) -Australia's top investment bank, Macquarie Group, reported a decline in first-quarter net profit on Thursday and announced that Chief Financial Officer Alex Harvey will step down at the end of 2025. Harvey will retire mid-2026 after completing an extended handover to his successor, Frank Kwok, who has been with Macquarie for 28 years and currently serves as deputy CFO, the company said. The leadership changes come as Australia's corporate regulator (ASIC) has sued Macquarie, alleging it misreported up to A$1.5 billion worth of short sales over a 15-year period, misleading the market and violating transparency rules put in place following the global financial crisis. Macquarie indicated it may adjust executive bonuses following the ASIC lawsuit, stating, "So far as remuneration impacts are concerned, this will be an FY26 matter, about which the board will come to a view over the period ahead." "As CFO for the last eight years, Alex has delivered a significant transformation in Macquarie's financial management and stakeholder engagement activities, playing a key role in driving the global growth of the Group," Macquarie said. The bank's first-quarter net profit declined due to lower contributions from its Asset Management arm and Commodities and Global Markets unit. Macquarie Asset Management experienced a softer quarter compared to last year, with net profit contribution down primarily due to timing of investment-related income from asset realisations. Meanwhile, Commodities and Global Markets unit's net profit contribution fell due to reduced contribution from Commodities, which recorded lower net interest and trading income in North American Gas and Power.
