CSL Limited (CSL: ASX) shareholders were keen to resolve an ongoing dispute about executive pay at the company's AGM on Wednesday but some weren't happy after the CEO enjoyed another pay increase despite remuneration concerns raised last year.
CSL CEO and managing director Paul Perreault took home more than $10.43 million for FY16, prompting a first strike from shareholders.
On Wednesday Chairman John Shine said shareholders have approved a new remuneration report, despite Mr Perreault's pay increasing to $10.45 million for FY17.
"Since the 2016 Annual General Meeting and the 'first strike', members of the Board have met with a number of shareholders to better understand their concerns," Dr Shine said.
"The key messages were to focus on simplicity and transparency, reward real achievement, ensure executive alignment with shareholders' interests, and do a better job of explaining our approach to rewarding senior executives.
"Following this, we have made many changes to how we now approach remuneration."
David Anstice, Chairman of CSL's Human Resources and Remuneration Committee, said Mr Perreault and his team delivered above target earnings growth, sector leading growth in plasma collection volumes, launched new products, ensured the Seqirus strategic plan remains on track, and secured an entry strategy into China.
"Bonuses paid represent payments resulting from the achievement of shared and individual quantitative and qualitative stretch targets," Mr Anstice said.
"Notwithstanding our outstanding performance, for the 2017/2018 year, the CEO will not receive an increase to any component of Total Reward and the Board will not receive any increase to Director's fees.
"The Board has however approved an average senior executive Total Reward increase of 3%, which will be allocated as hurdled equity opportunity."
Is Paul Perreault paid too much?
Since Mr Perreault was appointed CEO of the global biopharmaceutical company in August 2013 the CSL share price has gone from under $68 to close on Wednesday at $141.45.
While CSL's shares have doubled since Mr Perrault assumed the reigns, other companies in the sector have done well, some better.
The Mayne Pharma Group Ltd (ASX: MYX) share price has moved from 0.53 cents in August 2013 to close on Wednesday at 0.73 cents. Sigma Healthcare Limited (ASX: SIG) shares have gone from 0.64 cents to 0.85 cents.
The Australian Pharmaceutical Industries Ltd (ASX: API) share price has more than tripled from 0.48 cents to close on Wednesday at $1.58. And the Starpharma Holdings Limited (ASX: SPL) stock price has moved from 0.99 cents to $1.40 over that four-year and-three-month period.
