Yesterday, one of the company’s largest shareholders announced...

Yesterday, one of the company’s largest shareholders announced major pay cuts for its own directors.

Perpetual’s chairman will have his pay cut by 42%; other directors drop by an average of 25%.

The cost cutting at Perpetual is due to an underperforming business model. That’s what we’ve got.

The CSR share price has been in continual rapid decline for more than the past six years (see the share price graph). This has destroyed shareholder wealth.

How can CSR directors justify their rewards for a grossly underperforming company for so long?

Surely, the lesson is clear.

At the AGM on 12 July, CSR shareholders should vote to slash directors’ entitlements and get rid of deadwood.