More than 26 per cent of proxy shareholders voted against executive pay packets, which outgoing chair Damian Roche acknowledged as a matter the organisation needed to address.
“It is disappointing to see that we will most likely receive a strike, and we fully acknowledge that this is a signal for us to do more work and keep engaging,” Roche said. “We have acted on what we heard and have been on a journey to methodically refresh our governance capability and ... frameworks to ensure they are fit for purpose.“
The ASX narrowly avoided a first strike at its AGM last year when 21.2 per cent of shareholders voted against the remuneration report. If it is hit with a second strike next year, shareholders could trigger a spill of the board.
The market operator has been under increased scrutiny after the corporate regulator in August launched Federal Court proceedings against the ASX for allegedly misleading statements it made in relation to the replacement of its clearing and settlement system, the Clearing House Electronic Subregister System (CHESS).
On Friday, US stock indexes gave up an early gain and drifted to a mixed finish, helping give the market its first losing week since early September.
The S&P 500 closed little changed after having been up 0.9 per cent earlier in the day. The benchmark index ended the week 1 per cent lower, ending a six-week winning streak.
The Dow Jones fell 0.6 per cent and also posted its first weekly loss after six straight gains. The Nasdaq composite eked out a 0.6 per cent gain thanks to gains for several Big Tech stocks. It extended its winning streak to seven weeks.
Both the S&P 500 and the Dow have been generally falling back from record highs set late last week. The market has been more cautious amid worries that stocks have become too expensive. Higher Treasury yields, which make stocks less appealing to investors, also added more pressure.
“There’s a degree of exhaustion following a very steady move higher,” said Mark Hackett, chief of investment research at Nationwide. “It’s just natural after that kind of move to have a period of sideways movement.”
Company earnings reports, which have been mostly solid, continued to be a key focus for investors. The latest round of corporate profit reports could give Wall Street a better sense of whether the high stock prices are justified.
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Capital One Financial rose 5.2 per cent after beating Wall Street’s third-quarter financial forecasts. Ugg footwear maker Deckers Outdoor climbed 10.6 per cent after raising its financial forecast for the year.
Strong earnings drove gains for several other companies. Technology companies L3Harris Technologies rose 3.5 per cent and Western Digital rose 4.7 per cent.
More than a third of the companies in the S&P 500 index have reported their latest quarterly financial results. Most of the results have beat analysts’ forecasts.
McDonald’s lost another 3 per cent as the deadly outbreak of E. coli poisoning tied to its Quarter Pounders expanded. The stock lost 7.6 per cent this week as it posted its worst weekly loss in more than four years.
Russia’s central bank on Friday raised its key interest rate by two percentage points to a record-high 21 per cent. Moscow is trying to combat growing inflation sparked by military spending after its invasion of Ukraine.
In Europe Germany’s DAX rose 0.1 per cent and France’s CAC 40 lost 0.1 per cent. Britain’s FTSE 100 edged 0.2 per cent lower. Stocks were mixed in Asia.
With AP
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