GCS receives first shareholder strike

Global Construction Services has received a first strike against its remuneration report, with shareholders also protesting against the re-election of executive director George Chiari.  

Around 30 per cent of voting shareholders opposed the company's remuneration report at its annual general meeting in Perth today. 

A vote for the re-election of Mr Chiari to the GCS board also attracted a negative vote of more than 30 per cent.

Under two-strike rules introduced in 2011, if 25 per cent of voting shareholders oppose a company's remuneration report, it receives a strike.

If this happens again the following year, it receives a second strike and a resolution to spill the board is automatically triggered.

GCS managing director Enzo Gullotti received a total remuneration of $839,220 in the 2013 financial year, including $120,000 in short-term and retention incentives and an $89,418 long service leave payout.

Mr Chiari received a total remuneration of just more than $521,000.

Each receives a minimum guaranteed annual pay increase of 5 per cent under the terms of their employment contracts.

GCS reported a 33 per cent fall in annual net profit in FY13 amid what it described as challenging conditions.

The company expects conditions to remain difficult in the months ahead but is tipping a rebound of confidence in the commercial sector to bolster its performance.

GCS shares were 1.8 per cent higher at 55 cents at 11:25am WST.