Mortgage Choice has narrowly avoided a board spill caused by shareholder anger over bonuses paid to its former chief executive.
More than 50 per cent of votes from the home loan broker's investors went against the company's executive pay in the 2014/15 financial year, the second successive year of a no vote above the 25 per cent threshold that delivers a strike.
That triggered a vote on a spill of the Mortgage Choice board, but only seven per cent of votes were in favour of removing the company's directors.
At issue was the awarding of 100 per cent of short term bonuses to Michael Russell in each his five years as chief executive.
Mr Russell stood down from the top role in April but remained with Mortgage Choice until July, and was paid almost $300,000 in cash bonuses in 2014/15.
Mortgage Choice shares have plunged 46 per cent since February, and its annual profit dropped five per cent due to its loss making health insurance and mortgage comparison business, which it recently shut down.
Chairman Peter Ritchie was aware of the opposition to Mr Russell's bonuses, and told the meeting his pay packet had been deemed appropriate.
"The proxy advisers made no mention of the quantum of his package - only the percentage of his bonus," Mr Ritchie said.
"We believe the important factor is Michael's total reward and where it places him in the marketplace, and we believe Michael's package was entirely appropriate."
He also defended the company's share price, largely blaming external factors.
"We think the market is making a monumental error," Mr Ritchie said.
The change of chief executives and volatility in the financial sector of the market in recent months were among the influences on the fall, he said.
But Mortgage Choice shares enjoyed their best daily gain in two months on Wednesday, as new chief executive John Flavell said cash revenue in the first quarter of 2015/16 was up 10 per cent on a year ago.
Home loan approvals were up 3.3 per cent at $3.4 billion and financial planning revenue had soared 75 per cent to $2.08 million.
Mortgage Choice shares gained 14 cents, or 7.7 per cent, to $1.95.
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