In a pointed effort, Australia's sovereign wealth fund, the Future Fund, has voted against executive pay packages of 21 companies listed on the Australian Securities Exchange (ASX) during the 2023 financial year.
The fund, chaired by former federal treasurer Peter Costello, also opposed various equity grants for chief executives and directors.
The votes were enabled by the Future Fund's participation in 267 Annual General Meetings (AGMs), an increase from 230 in the previous year.
Companies in the crosshairs included high-profile names like The Star Entertainment Group, Goodman, Stanmore Resources, Downer EDI and Whitehaven Coal (ASX:WHC).
Executives such as Worley's Robert Ashton and Goodman Group (ASX:GMG)'s Greg Goodman were also singled out.
The fund, which manages over A$200 billion, cited its commitment to robust environmental, social, and governance (ESG) policies as one of the reasons for its voting choices.
Shaping corporate policy
Ostensibly taking a moral standing, the Future Fund has abstained from investing in more than 70 companies linked to the tobacco and military weapons industries, including Philip Morris International (NYSE:PM) and British American Tobacco (LON:BATS) subsidiaries.
That said, it voted against various cultural heritage and traditional ownership proposals at Origin Energy’s AGM and has historically opposed initiatives requiring mining companies to conform to the Paris Agreement climate change stipulations.
For the 2023 financial year, the Future Fund reported a 6% annual return, adding nearly A$12 billion to its value.
In the long run, it has seen a 10-year return of 8.8% per annum against a target of 6.9%, augmenting its management portfolio by over A$145 billion since its inception.
The fund now stands at a record A$206.1 billion, while its Board of Guardians oversees an additional A$50 billion in five other public asset funds on behalf of the Commonwealth government.