Australia's biggest car fleet manager has drawn the ire of shareholders due to a lack of transparency in the way it pays its executives.
McMillan Shakespeare was delivered a so-called first strike at its annual meeting for shareholders on Wednesday amid displeasure over short-term cash incentive payments.
More than 40 per cent shareholders voted against the company's renumeration report, above the 25 per cent threshold at which a company incurs a strike.
If a similar result occurs at next year's meeting, the company faces a spill of its board.
Australian Shareholders Association chairman Ian Curry, who was at the meeting, said it appeared a number of larger shareholders had followed the advice of a proxy adviser firm to vote against the remuneration report.
He said the dispute was linked to a lack of disclosure around the incentives, rather than the size of the payments themselves.
"It was felt by this proxy adviser that they (McMillan Shakespeare) hadn't disclosed enough," he said.
McMillan Shakespeare's annual report indicates the company's remuneration committee has the authority to award cash bonuses to executives for "outperformance compared to budget targets" but does not go into details about the targets.
New chief executive Mike Salisbury received a $50,000 cash bonus for the year, while his predecessor Michael Kay received a $100,000 payment.
Mr Curry said the ASA had voted in favour of the renumeration report after discussions with the company.
"They don't overpay their executives, by comparison with comparable companies, and they certainly don't make it easy for you to gain your bonuses," he said.
He expected the company to address the disclosure issues next year, based on his discussions.
"I think this is a one off thing...it was unfortunate but if it means the company has to disclose more that's positive as well."
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