Ann: Appendix 3Y - Lindsay Maxsted, page-2

Oh Lindsay!

Reading the Business section of the Australian today (4January 2019) I saw the article “Rethinkcompany strikes” where Westpac chairman Lindsay Maxsted suggested thethreshold for shareholders to vote for a strike against listed companies is toolow.

As a shareholder in WBC (along with 600,000 other retailinvestors) and a long-time admirer of Maxsted I was disappointed he suggestedraising the limit to 50%. This would reduce the Board’s accountability to WBC’sowners - something I expect other retail investors would likewise resent.

So, I checked his record as chairman – interesting…

Since being appointed Chairman 7 years ago Lindsay hasearned $5.5 million in remuneration (which is in addition to the $1.1 millionhe earned as a director between joining the Board in 2008 and taking the Chairin December 2011).

Over the 7 years his annual remuneration has increased 23%.

Over the same time-frame the market capitalisation of thebank has increased by 25% reflecting the increase in the share price from $20in December 2011 to $25.00 today. So, his increase in pay as chairman looksreasonable.

But dividends (which we retirees all live on) have onlyincreased from $1.56 per share in 2011 to $1.88 today, 22 cents increase or 14%.Had we shareholders received the same increase in our dividends as Lindsay did inhis remuneration as Chairmen the dividend in 2018 would have been $1.92.

Should we  lobby for directors’ remuneration to belinked more closely with TSR (Total Shareholders’ Return)? And spill boardswhere managements’ and directors’ remuneration increase faster than dividends?