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Nine survives shareholder backlash, seeks to have license fees reduced

Tuesday, 15 Nov 2016 12:12:53 | Peter Ryan

Peter Costello copped some shareholder flak over his $425,000 salary as Nine chairman. (ABC)

Nine Entertainment has survived the threat of an embarrassing shareholder backlash on executive pay after the company's remuneration report was passed by more than 78 per cent of shareholders.

One major investor overrode recommendations for a 'no' vote from proxy advisors at its AGM today. Nine's share price has more than halved over the past year as a result of falling revenue.

Shareholders, including some big institutional shareholders, had been planning a protest vote on Nine's remuneration report, given that non-executive directors are paid $180,000 a year, while chairman and former Liberal treasurer Peter Costello receives $425,000.

"These fees haven't been moved for three years and I'm happy for the board to have a look at them in the light of the performance of the company," Mr Costello said.

"I don't think they'll add to the bottom line because they're a very, very small part of expenses but, nonetheless, I think all costs in relation to the company should be looked at and I think it's a fair thing to look at them."

Mr Costello didn't name the major shareholder who saved the Nine board from what would have been an embarrassing defeat.

Digital competition

Mr Costello also used Nine's annual general meeting to ramp up lobbying for a further reduction on commercial television licence fees.

"License fees and content rules do not apply to foreign entrants now delivering content to Australian viewers directly who are competing with Australian broadcasters for the revenue that we are paying those license fees," he said.

"The licensing regime is anachronistic, it was conceived for a media world that is passed, it is out of step with arrangements in other comparable markets."

Nine has had a difficult year, with earnings slumping 7 per cent year-on-year and its net profit falling by $120 million.

Like all broadcasters, the company has been hurt by the rise of digital competitors, including Netflix, though it has a foot in the door in its Stan joint venture with Fairfax Media.

Free-to-air broadcasters are awaiting changes to media ownership laws, and have already seen their license fees reduced in the May budget.

Nine chief executive Huw Marks said the company had spend $7 million in fees over the past year, which included the Beirut kidnapping debacle.

AustraliaPlus


 

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