CABCHARGE'S board has been rebuked for the second year in a row over the $2.5 million salary paid to its long-time chief executive and chairman, Reg Kermode.
About 40 per cent of shareholder votes were cast against Cabcharge's remuneration report yesterday after two influential proxy advisers urged a ''no'' vote because Mr Kermode's pay this year was considerably more than bosses at similar-sized companies pocketed.
Last year about 37 per cent of votes were cast against Cabcharge's pay card.
But the reprimand was expressed in absentia and not reflected at Cabcharge's annual meeting in Sydney, where some shareholders praised Mr Kermode and said he deserved to be paid more.
Mr Kermode's total package this year of $2.5 million - all in cash - included fixed pay of $1.93 million, up 10 per cent on last year. It made Mr Kermode's fixed salary three times greater than that paid to CEOs of similar-sized public companies.
Another point of contention was Cabcharge's awarding of executive bonuses in cash rather than shares. But Mr Kermode defended the practice, saying: ''We have a policy of not issuing shares because shares you have to feed forever - you only have to feed me until I die.''
Corporate governance experts had raised concerns about Mr Kermode, 83, holding the roles of both CEO and chairman. Mr Kermode said the board was aware of the need for succession planning and would split the roles when he stepped down.
''One thing I can assure you of is that I will be the last CEO and chairman - that is a given,'' he told shareholders.
Mr Kermode, often referred to as the ''taxi king'', was overwhelmingly re-elected to the board despite proxy adviser CGI Glass Lewis urging shareholders to vote against him. However, the re-election of Neill Ford, managing director of Yellow Cabs, did not go as smoothly, with about 8 per cent of votes cast against him.
Cabcharge said its first-quarter results suggested turnover for the first half would be closer to $480 million than the $564 million recorded in the first half of 2008-09.
