James Hardie Industries (ASX:JHX) urged shareholders to vote for a proposal to increase its non-executive director fee pool at an Aug. 21 annual meeting, saying its revised fee structure reflects extensive feedback from shareholders, according to a Tuesday filing with the Australian bourse.
The company noted that proxy advisory firm Institutional Shareholder Services has recommended a vote against the proposal, but argued that the fee cap increase is necessary to ensure it can "appropriately remunerate a potentially larger board in the short to medium term."
James Hardie also said the proposal "should be considered against the significant expansion of directors' duties over time," including a greater regulatory burden as a result of the company's New York Stock Exchange listing.
It added that the proposed cap is an upper limit, not an automatic spend.