DroneShield Sets Stake Policy After Share Sales Fuel Anger

DroneShield Ltd. will set up a mandatory minimum shareholding policy for all directors and senior managers after a series of divestments from the firm’s top leadership sparked investor backlash.

The Australian defense company will require directors to hold stock equivalent to their annual base fee within three years, while the chief executive officer must retain a stake that’s worth 200% of their salary within 12 months, according to an exchange filing Monday. DroneShield is also updating its trading and disclosure policy, and will appoint an additional independent non-executive director. The stock gained as much as 5.8% in Sydney.