Mining Contractor Defies Pay Strike Threat with Record Performance
Shares in NRW Holdings surged to an all-time high on Thursday, reaching $5.35 in early trading, despite the mining and civil contractor facing the prospect of an unprecedented eighth consecutive strike against its executive remuneration report.
The $2.4 billion company revealed the potential pay strike in materials released ahead of its annual general meeting in Perth, where shareholders were set to vote on the contentious remuneration package.
Chairman Criticises Inconsistent Proxy Advice
In his address to shareholders filed with the ASX, NRW chairman Michael Arnett expressed disappointment with early voting results, though the exact figures weren't immediately disclosed. Arnett highlighted what he described as inconsistent policies from proxy advisers on executive remuneration.
"The proxy voting on today's resolutions are disappointing to say the least," Arnett stated in his prepared remarks. He noted that NRW had "worked over the years with the proxy advisors in a positive manner" while accepting criticisms on various aspects including diversity, tenure, and incentive schemes.
The chairman raised concerns about changing assessment criteria, stating: "Notwithstanding obtaining comprehensive independent remuneration benchmarking advice each year, which we carefully review and consider, the rules to which we are then assessed seem to change year on year."
Strong Financial Performance Drives Investor Confidence
Investors appeared unfazed by the remuneration controversy, driving NRW shares to their record peak following upgraded revenue and profit guidance presented to the AGM.
The company now forecasts revenue of approximately $4.1 billion for the 12-month period, with underlying earnings before interest, tax, depreciation and amortisation expected between $260 million and $265 million. This represents an improvement from the minimum $255 million forecast in early October.
Chief executive Jules Pemberton told shareholders that a "strong first-half performance and the depth and quality of work in hand, coupled with the strength of opportunities in all markets in which we play, augurs well" for both the current year and beyond.
By 7.30am on Thursday, NRW stock was trading 2¢ higher at $5.14, demonstrating sustained investor confidence despite the ongoing remuneration disputes that have seen the company receive seven consecutive strikes since 2018.
