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CSL chairman John Shine says 88 per cent of shareholders have agreed to vote in favour of the company's revamped remuneration report after an investor backlash over excessive executive pay.
The biopharmaceutical company copped a "first strike" vote from its shareholders rejecting its remuneration report at last year's annual general meeting, triggered by chief executive Paul Perreault's salary, which had climbed to $US8.17 million ($10.8 million) for 2015-16 thanks to higher performance-based pay.
Mr Perreault was paid a total of $US7.4 million in cash in 2017, bringing his total pay to $US8.2 million.
Since the first strike last year, members of the board had met with shareholders to better understand their concerns, Mr Shine said at the company's annual general meeting in Melbourne on Wednesday.
Aligning pay
Two consecutive strikes can result in the company board being spilt.
CSL chairman John Shine and chief executive Paul Perreault. Photo: Josh Robenstone
The new CSL executive pay design would "strengthen CSL and gain even better alignment between shareholders and executives", Mr Shine said.
While shareholders largely voted for the change, there were still critics.
A dissident from the Australian Shareholders Association (ASA) said the board had set performance hurdles that were not very high, which meant executives would still be getting high-performance bonuses.
Critics remain
If returns on invested capital came in at 27 per cent, executives still got massive bonuses, she said.
"You have set your hurdle so you just pay your self any way," she said. "I simply think it's not good enough."
CSL, which operates a plasma collection network, has nearly 180 centres in the US and Europe. Photo: Craig Abraham
In this industry reputation is critical, so whatever CSL does has to be at the top end.
Paul Perreault, CSL chief executive
But a proxy shareholder for the ASA who had met with CSL remuneration committee before the change, said the board had got the remuneration targets "about right".
The ASA would be closely monitoring changes to executive pay structures, he said. And there were extra safeguards such as malice and clawback provisions, so if there were serious issues identified, pay could be docked.
Human organ transplants
CSL has been undertaking human trials to investigate three new breakthrough medicines involving monoclonal antibodies, but its new "hidden gem" is human organ transplants, Mr Perreault said.
CSL's new "hidden gem" is human organ transplants, CEO Paul Perreault says. Photo: Angus Grigg
"And we have a number of products in our portfolio that we feel have applicability to really changing the way that transplantation and especially the quality and quantity of organs that can be available."
He said CSL was doing clinical trials and "I would say that within the next two to three years we should start seeing outcomes".
Stockpiling flu vaccines
CSL's flu vaccine business has also performed strongly. Mr Perreault said the company had entered into new stockpile agreements with governments in Australia and the United States on vaccines against the H7 and H9 virus.
CSL scientist Ann Curtis with eggs used in a flu vaccine Photo: Josh Robenstone
Aside from its flu vaccines, CSL also operates one of world's largest plasma collection networks. It has nearly 180 collection centres in the United States alone.
Plasma-derived therapy for a patient with a primary immunodeficiency or haemophilia can take tens to hundreds of donations to deliver a single patient treatment each year.
Mr Perreault said CSL opened 28 new centres in the past year, or two to three new centres a month, which was the "most rapid expansion that anyone in industry's been able to achieve".
Blood donations under fire
One shareholder noted the Blood Business overseas media report that aired on ABC's 4 Corners, which alleged CSL was among companies worldwide that were taking advantage of people overseas on low-incomes and with questionable health to collect the blood.
CSL takes blood donations from people throughout the world. Photo: James Davies
Mr Perreault, who joined CSL Behring in 2004 when CSL Limited acquired Aventis Behring, said he was was familiar with the industry and practices that went on but defended CSL.
"In this industry reputation is critical, so whatever CSL does has to be at the top end," he said. "Yes there are players out there that I would consider not up to our quality."
CSL could not rely on donations from Australia because there were not enough donors here. But he said overseas donors were "heavily screened" and were often repeat donors.
18 million donors
CSL has 18 million individual donors in its plasma centres worldwide.
Mr Perreault said the company's own surveys had found most of those donors were full-time workers (47 per cent), some were part-time workers (26 per cent), students (11 per cent) and the rest unemployed.
CSL chief Paul Perreault says it connected every donor with patients benefiting from the blood. Photo: Wayne Taylor
He said CSL also ensured that it connected every donor with patients benefiting from the blood that allowed them to have lifesaving treatments.
Another shareholder raised concerns with IP lawsuits lodged against CSL. Mr Shine said the company believed they were "without basis" and would be fighting the case through the courts, but such battles often took years to resolve.
No share buyback
CSL will not buy back shares this year, the first time since 2008, to invest in future growth projects.
The board determined a final unfranked dividend of US72¢ (90.5¢) per share, taking the total payout for the year to $US1.36 per share.
The company announced net profit of $US1.34 billion on sales revenue of $US6.6 billion, and flagged it expects to lift underlying net profit to $US1.48 billion to $US1.55 billion in 2018.
The company's share price closed at $141.45, up 1.8Â per cent, on Wednesday.