Market sources, not authorised to speak publicly on the issue, told this masthead that some big investors were on Thursday seeking meetings with G8 in the aftermath of the allegations and resulting knock to its share price.
G8โs largest shareholders are made up of investors and super funds including Allan Gray, Tanarra Capital, Wilson Asset Management, Australian Retirement Trust, Hostplus, Dimensional Entities and Vanguard.
Also on Thursday, Macquarie analysts downgraded their outlook for G8.
โThere is high uncertainty concerning the quantum of potential reputational or financial impacts the incident could create,โ the analysts warned.
G8 chief executive Pejman Okhovat received remuneration totalling $3.3 million in 2024. His total actual remuneration, which is sometimes used as a more accurate reflection of pay, totalled $1.53 million.
Waterhouse flagged that Okhovatโs pay packet should be examined, as the full extent of the reputational harm becomes clear.
โIn the context of ongoing investigations, the Board may need to consider at the appropriate time whether any bonus payments to the CEO remain appropriate,โ Waterhouse said. โClear and timely communication will be important to maintain stakeholder confidence,โ she said.
Clawback provisions exist in G8โs corporate governance practices, with leadersโ incentives able to be cancelled or unvested in โexceptional circumstancesโ.
At G8โs annual general meeting in April, 90 per cent of bonuses were paid to leaders despite missing key targets.
Loading
In response to the ASAโs claims, a G8 Education spokesperson said, โchild safety and wellbeing are embedded into our leadership, governance and culture and are detailed in our policies and proceduresโ.
โThe G8 Board is horrified and appalled at the nature of the allegations and deeply saddened that they occurred at a G8 centre,โ the spokesperson said.
โG8 assures investors, families, team and other community that the safety and wellbeing of every child in our care is our highest priority. We are deeply committed to providing a safe, nurturing, and supportive environment for all children and families.โ
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
About The Author
