Skate and surfwear company Globe International has been forced into a board spill after shareholders rejected its executive pay structure for a second straight year.
Almost 86 per cent of votes cast at Globe’s annual general meeting on Wednesday were against the company’s remuneration report for the 2011-12 financial year.
That follows a 74 per cent vote against Globe’s pay policy at last year’s annual general meeting.
Under new corporate laws, shareholders of a company receiving two consecutive votes of 25 per cent or more against its remuneration can force the company’s board to face re-election.
Globe shareholders have voted for a spill meeting, which must be held within 90 days.
The company said the votes cast against its pay package represent only 8.6 per cent of its total shares. Directors and executives of the company own 74 per cent of the shares, but are unable to vote on matters relating to their positions.
Globe’s chief executive Matthew Hill was paid $721,720 in the 2011-12 financial year, down from $870,356 in the previous year.
However, Globe’s president in the United States Gary Valentine, chief financial officer Jessica Moelands and president in Australasia Jon Moses, all received higher pay packets in 2011-12, of between $382,000 and $241,000.
Globe made a profit of just $100,000 in the 2011-12 financial year, and Mr Hill told shareholders on Wednesday it was difficult to predict this year’s result because of ‘‘ongoing downward pressure on margins and volatility in key markets’’.