Paperlinx has announced more cost cuts and job losses as shareholders rejected the struggling paper and packaging merchant's remuneration report.
Shareholders voted against the report at last week's annual general meeting, including activist investor Andrew Price, whose election to the board was passed.
The Australian Shareholders Association had recommended that investors reject the report because of the 'golden goodbye' handed to former chief executive Toby Marchant and the $50,000 per month paid to a former director, Tony Clarke, for overseeing the company's European restructure for three months.
Paperlinx said it would take more steps to restructure and cut costs in its business in the United Kingdom and elsewhere in Europe in response to depressed trading conditions in Europe.
The UK restructure would cost $3 million, but combined with cost cuts, would deliver $13 million in annual benefits.
Paperlinx said it was seeking also to cut costs in its businesses elsewhere in Europe - particularly Germany and the Netherlands - and if the cost cuts did not generate benefits, it would consider more asset sales.
"We will continue to work to strengthen our already profitable businesses in Australia, New Zealand, Asia and Canada and direct the future of the company towards a diversified range of products with growth ahead of them," chairman Michael Barker said.
Paperlinx reported a net loss of $266.7 million for the financial year ended 30 June, 2012 after writing off the value of its European operations.
The company booked a loss of $108 million in the prior year.
Barker was appointed as chairman of Paperlinx in October after Harry Boon resigned as chairman and several other directors also quit the Paperlinx board.
Those departures followed that of Paperlinx chief executive Toby Marchant in July.
Paperlinx interim chief executive Dave Allen told shareholders there was "a seismic cultural change" underway at Paperlinx and a sense of urgency and profit focus.
"We are accelerating growth in our diversified businesses through both organic growth and bolt-on acquisitions such as Canterbury Packaging in New Zealand, all against the backdrop of a much leaner, flatter organisational structure," he said.
Allen said paper volumes continued to decline and were greater than planned in Europe and Australia, New Zealand and Asia.
