Rinehart Strikes at Fairfax

In her continuing efforts of criticizing Fairfax Media’s board, mining magnate Gina Rinehart has voted against the performance rights deal of Greg Hywood, the company’s chief executive.

She also voted for the reelection of Jack Cowin and Sam Morgan, who are known allies, friends and business associates of Rinehart.

Despite voting against Hywood, Hywood still managed to get the support for his performance rights worth $800,000. Her votes were also not enough to stop to reelection of James Millar and Michael Anderson for directors.

Based on the laws, a 25-percent vote against Fairfax Media’s remuneration report would trigger a first strike. A second strike at the AGM next year may result to a spill of the board.

Rinehart is usually represented during the annual meeting. John Klepec said that the mining mogul continues to be critical of Fairfax media. Klepec is chief development of Hancock, Rinehart’s holding company.

Rinehart’s ally Jack Cowin said that they are critical of Fairfax because it continues to lose so much money. Cowin, however, said he remains bullish about the company’s future and has even bought about a million shares last month.

He also said he is considering buying more shares.

Cowin, however, dispelled speculations that he is biased towards Rinehart. He said he is independent even though he sometimes serves as alternate or stand-in of Rinehart.