Macquarie Group chief executive Shemara Wikramanayake will retire in November after nearly four decades with the finance giant, leaving office with a direct shareholding valued at more than $375 million, according to company announcements and market disclosures. Chairman Glenn Stevens informed the Australian Stock Exchange on Thursday morning that group head of banking and financial services Greg Ward will succeed Ms Wikramanayake after her eight-year tenure as CEO.
Executive Pay and Shareholdings Scrutinized at AGM
Ms Wikramanayake’s total salary reached just shy of $30 million last year, placing her fifth among Australia’s highest-paid chief executives, according to company records. Beyond her cash remuneration, she directly owns 1,474,481 company shares. Based on a recent trading price of $254.93 Australian dollars, that direct holding exceeds $375 million in value. She also retains 378,091 restricted share units and 62,106 performance share units, according to disclosures presented ahead of Macquarie’s annual general meeting on Thursday.
During the meeting, one shareholder questioned whether the executive bonus agenda item remained necessary given the outgoing chief executive’s equity. “I would have thought that given that Shemara is retiring, that we wouldn’t need to put resolution four … normally when CEOs go, you might pull the bonus item,” the shareholder told the AGM. Chairman Glenn Stevens defended the compensation structure, stating that Ms Wikramanayake had “well and truly earned” her pay packet. Chief financial officer Frank Kwok added that high employee share ownership aligns staff interests with the company, noting that personnel operate under strict trading windows.
Climate Activists Challenge Fossil Fuel Investments
The annual general meeting also featured intense questioning from a coalition of more than 160 shareholders and advocacy groups, including US pension funds, over Macquarie’s fossil fuel financing. Market Forces policy analyst Morgan Pickett told leadership that the firm was pouring hundreds of millions of dollars into the Beetaloo Basin gas fracking operation. “Despite last year’s 35 per cent vote in favour of clearer climate action, Macquarie has failed investors by radically increasing its support for fossil fuel expansion,” Mr Pickett said.
Did you know? Macquarie Group narrowly avoided a second strike on its remuneration report during Thursday’s AGM, which would have triggered a board spill. While the Australian Shareholders’ Association voted against the report, sufficient proxy votes carried the motion.
Additional warnings came from Australian Security Leaders Climate Group executive member Ian Dunlop, a former senior executive at Shell and chair of the Australian Coal Association. Mr Dunlop argued that the firm was treating a 3-degree Celsius warming scenario as a business opportunity rather than a global catastrophe. Climate scientist John Church also addressed the meeting, stating that Macquarie’s financing decisions directly contradicted Paris Agreement targets and amounted to greenwashing.
Leadership Transition and Quarterly Financial Results
Incoming chief executive Greg Ward brings decades of internal experience to the role, having joined Macquarie in 1996. Mr Ward and Ms Wikramanayake have worked together for 30 years, according to statements released by the board. “Shemara leaves Macquarie incredibly well positioned, with each of our businesses performing strongly,” Mr Ward said following the announcement.
Simultaneously, Macquarie released its quarterly results covering the three months following March 31. Banking and financial services deposits grew 4 per cent over the quarter to reach $223.3bn, while mortgages rose 6 per cent and business loans increased 3 per cent. The commodities and global markets divisions alongside investment banking posted higher net profit contributions compared to the previous corresponding period, offsetting a shrinking profit contribution from asset management. In May, Macquarie reported a full-year $4.85bn profit, representing a 30 per cent increase.
Frequently Asked Questions
When is Shemara Wikramanayake stepping down as Macquarie CEO?
Shemara Wikramanayake is scheduled to retire in November, concluding an eight-year tenure as chief executive and nearly four decades with Macquarie Group, according to company announcements.
Who will succeed Shemara Wikramanayake at Macquarie?
Greg Ward, the group’s head of banking and financial services and a Macquarie employee since 1996, will succeed Ms Wikramanayake as chief executive in November, subject to approvals.
What is the value of Shemara Wikramanayake’s shareholdings?
Ms Wikramanayake directly owns 1,474,481 Macquarie shares valued at more than $375 million based on recent trading prices, alongside hundreds of thousands of restricted and performance share units.
Did Macquarie face a board spill during the recent AGM?
No. Although the Australian Shareholders’ Association voted against the remuneration report, enough proxy votes were cast to carry the motion, preventing the second strike required to trigger a board spill.
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