Alumina CEO gets first strike

Shareholders in Alumina have lost patience with the company's poor performance delivering a first strike vote against its executives pay.

Chief executive John Bevan's $A2.2 million plus salary package including a cash bonus was the focus of the angst amid suggestions the company was merely a post office that collects dividends for shareholders.

Alumina is among the sharemarket's top 100 but does not actually operate the bauxite, alumina and aluminium assets it has a 40 per cent stake in with partner aluminium giant Alcoa.

About 50 per cent of shareholders voted against the remuneration report and can spill the board next year if more than 25 per cent vote against it again under the two strikes rule.

Australian Shareholders Association member Graeme Hawkins pointed out that while Mr Bevan was receiving a bonus worth more than half of is salary, ordinary shareholders had received no dividends and the share price had fallen.

Alumina posted an annual net loss of $US62.1 million ($A60.86 million) in 2012.

Chairman John Pizzey - who receives a $A376,000-plus package - rejected the slur saying the leadership team including directors had a difficult job negotiating receiving dividends from Alcoa that they did not have to pay.

Mr Bevan had done a good job renegotiating the company's debt last year, he said, which was net $US664 million.

The company and the industry generally is hurt by weak prices related to over-supply and the unfortunate fact that the price of the refined powder input alumina has been linked to the aluminium price.