The directors of major electricity network owner Spark Infrastructure have been dealt a blow with shareholders handing the company a "first strike" over executive pay.
Spark Infrastructure invested $735 million for a 15 per cent stake in poles and wires owner TransGrid in 2015, as a member of a consortium of funds that bought the publicly owned asset.
But some shareholders have since questioned the investment and its price tag, as well as the priorities of the Spark board and their pay structure.
At the company's annual general meeting on Friday, shareholders voted 34.43 per cent against adoption of the 2015 remuneration report, well above the 25 per cent threshold that constitutes a so-called `first strike'.
A similar result at next year's meeting could result in a spill of the board.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Speaking before the vote, chairman Brian Scullin acknowledged the long running stoush with some major shareholders.
"I acknowledge that investors have raised a variety of concerns, which are reflected in the voting results here today," he said.
"We take our responsibility to securityholders very seriously and intend to take steps to ensure that we properly understand securityholders concerns and address them appropriately."
Mr Scullin's fees rose in 2015 to $268,000, while fees for non-executive directors increased to $122,000.
Chief executive Rick Francis took home almost $1.6 million in remuneration in 2015, up from $1.2 million in 2014, while chief financial officer Greg Botham also got a pay rise.
Spark's net profit fell 31 per cent in 2015, while underlying profit slipped seven per cent.
Two external candidates had been seeking election to Spark's board at the meeting, reflecting the concerns held about the company's direction, but their bids failed.
