Funeral homes and cemeteries operator InvoCare has withdrawn a proposed termination benefits package for former chief executive Andrew Smith following concerns by some larger shareholders.
Mr Smith, who spent more than six years as chief executive of InvoCare, left on April 30 after the company announced in December 2014 that it would not extend his term.
Invocare was to have put a termination benefits package for Mr Smith to shareholders for their consideration at the company's annual general meeting in Sydney on Friday.
But the company said on Friday that the proposed package had been withdrawn and an alternative package would be formulated.
"The company will liaise with various stakeholders and shareholder groups with a view to formulating an alternative termination benefit arrangement which would be likely to be supported by shareholders of the company," InvoCare said in a letter to the Australian Securities Exchange.
"If such an alternative is formulated, a further resolution will be put to members at the next general meeting of the company."
Aside from Mr Smith's unpaid salary and untaken leave entitlements, the InvoCare board proposed that Mr Smith's termination package include $1.4 million worth of unvested long-term incentive shares, plus short-term incentive payments for 2015.
InvoCare said that during Mr Smith's tenure, InvoCare had doubled in size as a result of numerous acquisitions.
The company's market capitalisation had increased from $520 million at the time of Mr Smith's appointment as chief executive to $1.4 billion.
Total shareholder returns grew by nearly 18 per cent per year, well above the ASX200 index's total shareholder return of seven per cent.
InvoCare said in presentation slides to the annual general meeting that acquisitions had been a large contributor to the company's success, and more acquisitions were possible.
But regulatory hurdles meant that more focus was needed on existing business to drive growth, for example, testing a different delivery model in the United States.
The company said that with greater focus on consolidation and innovation than acquisition in the next phase of its evolution, past remuneration strategy - which the board was comfortable with despite some market concerns - would be revisited during 2015.
Updating its performance, Invocare said that in the year so far to the end of April, group sales revenue was up 7.6 per cent compared to the prior corresponding period.
Shares in Invocare were steady at $13.18 at 1508 AEST.
Share
