The fallout from “The Kyle and Jackie O Show” has intensified for ARN Media, with shareholders delivering a crushing first strike against the broadcaster’s executive pay report at Thursday’s annual general meeting.
More than 90% of votes cast opposed the pay package, handing the company an official first strike under Australia’s two-strikes rule for remuneration reports. According to the Australian Financial Review, the result ranks among the largest shareholder protest votes in recent Australian corporate history.
It comes as the broadcaster continues to navigate the fallout from the collapse of “The Kyle and Jackie O Show,” the commercial fallout of which was laid bare at the AGM, with the broadcaster revealing that advertiser concerns linked to the show contributed to $26.4 million in lost metro and regional revenue during FY25.
It was an extraordinary admission, given that the company were paying Kyle Sandilands and Jackie ‘O’ Henderson a combined $20 million each year. The company is now embroiled in a legal battle against the pair, after the termination of both Sandilands’ and Henderson’s contracts, and the show’s subsequent implosion.
Despite the ongoing noise surrounding the saga, CEO Michael Stephenson attempted to calm waters, telling the meeting that “we expect a significant percentage of the $26m of revenue that was lost last year because of brand safety concerns to return, improving both our metro radio revenue and revenue share.”
A vote on ARN’s remuneration proposal, which included Stephenson’s $1.1 million annual salary, was overwhelmingly voted down by 90.1% shareholders. The strike means ARN lost the support of key shareholders, including Samuel Terry Asset Management, which holds 23% of the company, and Spheria Asset Management, which owns 14.4%.
Under Australia’s corporate governance rules, a second strike at next year’s AGM could trigger a spill motion that would place all board positions up for re-election. While first strikes are not uncommon on the ASX, votes above 90% are rare – particularly for a media company already under sustained commercial and legal pressure.
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From Mediaweek