Invocare, one of the largest funeral service providers in Australia, with funeral directors in Sydney and other cities in the country, has made a reputation for taking good care of the businesses of the ‘departed’ and a recent move by the company is in line with that established reputation.
The company recently proposed to its investors, presenting a resolution during a recent shareholder meeting asking for the approval regarding the termination benefits of a senior executive of the company who is unfortunate enough to ‘depart’.
By ‘depart’, the terms doesn’t necessarily refer to having passed on to a better place, rather, it also encompasses the retiring, the removal due to redundancy, or any reason for the key employee, like the head undertakers, to leave the company honourably, using the executive’s performance as a point of reference for their departure and whether or not they are to receive benefits. Of course, the terms cover the unfortunate scenario wherein an executive dies, which is to be expected considering Invocare’s operations and reputation.
The board released a statement regarding the proposal, stating that it was aimed towardsensuring that executives would be motivated to make decisions that would benefit the company, decisions that were both long lasting and sustainable, especially with regards to the shareholders. The benefits remaining post-employment would be a form of after-work incentive.
The board adds that this idea is aimed at aligning interests between the company’s executives and investors, by enticing the former to make decisions that are, ultimately, beneficial to the latter in the long-term.
The Australian Shareholders Association is against the proposal, which was included alongside proposals for granting additional rights to Invocare chief executive Martin ‘Wyatt’ Earp. The ASA is against due to the fact that the acceptance would lead to benefits being given to the company executives on a three-year pass, not by deciding alongside investors on a case-to-case basis.
Invocare, one of Australia’s leading service providers, with funeral directors in Sydney and across the country is part of the group listed under ASX, of whom James Packer is a big part of. The board, however, has stated that it would not treat them any differently.