Tabcorp Holdings’ Governance Survives Bruising At AGM

Tabcorp Holdings governance survived a bruising Annual General Meeting (AGM) in which disillusioned investors from the ASX-listed gambling group challenged the company’s corporate governance and executive leadership.

AGM voting saw 35% of Tabcorp shareholders oppose Paula Dwyer’s re-election as chairman of the company, extending her tenure for another two years.

Even more investor upheaval saw 37 percent of Tabcorp shareholders disagree with David Attenborough’s performance as chief executive of the company.

Australian business news sources report that Tabcorp investors would only approve the company’s remuneration report after significant cuts in board fees and the company’s executive bonus scheme was diluted.

The changes see Tabcorp governance prevent another year in which its shareholders push against the company’s executive pay system, upset by the company delivering low shareholder value from its $11 billion AUS merger with Tatts Group’s main business competitor.

Dwyer noted’ investor anxieties’ at the end of the AGM but maintained confidence in the new executive team of Tabcorp delivering on its’ complex post-merger integrations.’

“We’re sticking to the plan,” she said. “We’ve always said it’d come to life in 2021, and it will. I think people are just anxious to get that accelerated where it can be.”

Dwyer stressed the company’s target of achieving $130 to $145 million a year in cost savings by 2021 is retained.

Dwyer, who has worked as a Tabcorp director since 2005, announced last August that by 2021 she will end her tenure as chair of the ASX gaming group.

Under pressure, CEO David Attenborough would refute claims that lead shareholder Perpetual had requested that Tabcorp break its lottery and keno capital into a separate business entity by releasing the company’s 2018/2019 accounts.