Online retailer Kogan comes under fire over plans to hand out $80MILLION in bonuses to its Aussie founders after profits soared during the pandemic
Online retailer Kogan has come under fire for planning to give its two Australian founders tens of millions of dollars in bonuses.
The e-commerce business will ask shareholders to approve a grant of six-million share options to executives Ruslan Kogan and David Shafer at its annual general meeting on Friday.
这家电子商务企业将在周五的年度股东大会上要求股东批准向高管鲁斯兰·科根(Ruslan Kogan)和大卫·谢弗(David Shafer)授予600万股期权。
Kogan shares are at $18.33 after Australians flocked to the site to buy electronics and household goods during the pandemic, boosting its stock price by 150 per cent.
According to a deal struck in May, the multi-millionaire owners could receive an extra $80million after being given options valued at just $5.29, the Sydney Morning Herald reported.
The deal attracted backlash from financial advisory firmsCGI Glass Lewis, ISS and Ownership Matters - which each suggested their clients vote against the proposal.
这笔交易招致了CGI Glass Lewis、ISS和Ownership Matters等金融咨询公司的强烈反对，这些公司都建议他们的客户投票反对这项提议。
The recommendation was provided on the grounds that the owners did not meet performance hurdles worthy of the exorbitant grant, they simply stayed in their jobs.
If the proposal is blocked, Kogan chairmanGreg Ridder said he would find a way to award the bonuses, either by buying them at market price or via a cash payment.
CGI Glass Lewis said if the application is approved, it would recommend that Kogan's directors not be re-elected, citing a 'governance failure'.
CGI Glass Lewis表示，如果申请获得批准，它将建议Kogan的董事不要连任，理由是“治理失败”。
Shareholder Stephen Mayne, who will put himself up for election to the board on Friday, warned that if Mr Ridder's plan succeeded, it could breach rules by theAustralian Securities and Investments Commission on reasonable remuneration.
'It's imperative for ASIC to get involved here and make sure the directors are acting in accordance with their duties,' he said.
'The idea that you give away $80million in value to satisfy a contract that's not legally approved by shareholders is staggering.'
Mr Mayne is a notorious shareholder activist and founder of Crikey magazine with a long history of making life difficult for the boards of big companies.
Ownership Matters director Dean Paatsch said the proposal was the easiest 'no' recommendation he had seen in years, but added that shareholders have the right to approve or disapprove.
'So it could be that on Friday, shareholders, for all their collective wisdom, decide that this is a good thing. And if that's the case, so be it. You can't stop people committing corporate suicide,' he said.
Kogan's board pointed out that Mr Kogan and Mr Shafer have not taken any other long-term incentives since 2016, but both men have sold more than $350million in shares collectively.
Mr Kogan has a net worth of more than half a billion dollars and sat at 188th place on the Australian Financial Review's Rich List.
But not all shareholders are unhappy with the proposal.
Tobias Yao, a fund manager at Wilson Asset Management, said management should be rewarded for their achievements and will vote 'yes'.
威尔逊资产管理公司(Wilson Asset Management)的基金经理托拜厄斯·姚(Tobias姚)说，管理层应该因业绩而获得奖励，并将投赞成票。
James Davis, chief investment officer at DS Capital, also agree and said the duo created 'enormous value'.
DS Capital首席投资长詹姆斯·戴维斯(James Davis)也对此表示赞同，他说这两家公司创造了“巨大的价值”。
Mr Kogan and Mr Shafer own 20 per cent of Kogan shares collectively, but will not be able to vote on the proposal.