More than 70% of shareholders voted against the company’s 2025 remuneration report at its annual meeting, resulting in NextDC’s first official 'strike' since 2013. The protest targets a $150 million bonus plan, where over $112 million may be awarded to the CEO if the company more than doubles its share price within five years. Although designed to boost performance, the vote indicates growing dissatisfaction among investors.
NextDC, Australia’s largest listed data centre developer, has seen strong growth and is aiming to expand further within the global cloud and data infrastructure industry. Rising demand for skilled executives has led the company to propose aggressive remuneration packages intended to retain key staff. The company argues these are vital for competing with international and private firms that are not restricted by ASX guidelines.
Proxy advisers Glass Lewis and ISS recommended voting against the proposal due to its scale and structure. However, the Australian Shareholders Association supported the plan, stressing the need to hold on to key executives amid growing competition for talent from firms such as Goodman Group, CDC Data Centres and Equinix. As part of the retention strategy, shares were also offered to 40 senior staff members.
Only 10% of data centre companies worldwide are publicly listed, which NextDC says hinders its ability to offer incentives through standard ASX practices. The company cited larger bonus figures at global competitors, including the $300 million reportedly awarded to AirTrunk’s leadership during its acquisition by Blackstone, as justification for the proposed package. Nonetheless, investors appear increasingly concerned about what levels of executive pay are appropriate.
If a second strike is recorded in 2026, it will trigger a vote on whether to spill the board, a move that could significantly alter the company’s leadership. For now, the vote reflects investor calls for a better balance between growth incentives and maintaining shareholder confidence.
