The Novonix Ltd (ASX: NVX) share price is sinking on Thursday, falling 7% to trade at $1.125.
Interestingly, there's been no news from the company today. However, yesterday saw more than 40% of Novonix shareholders vote against its remuneration report – triggering a first strike. Two consecutive strikes can cause a board spill.
Perhaps unsurprisingly given its tumble, the Novonix share price is underperforming the broader market today.
The S&P/ASX 300 Index (ASX: XKO) is down 0.5% right now while the S&P/All Technology Index (ASX: XTX) is plunging 1.3%.
Let's take a closer look at what appears to be the fallout from Novonix's dramatic annual general meeting (AGM).
Novonix share price tumbles on Thursday
The Novonix share price is back in the red on Thursday.
It comes after the stock slumped nearly 4% yesterday as the company held its AGM – entering the meeting with 54% of proxy votes already cast against its remuneration report.
That followed a 12-month period in which the Novonix share price has dumped a whopping 83% compared to the All Technology Index's 11% tumble.
Chair Admiral Robert Natter commented on the stock's disappointing performance, describing it as having "gyrated along with the rest of the market", as my Fool colleague James reported yesterday.
The chair also addressed the company's remuneration policy. Though, he didn't disclose the ominous proxy vote count.
He said its policies will evolve as it matures, allowing it to secure and retain talent amid workforce challenges in the electric vehicle and battery sector. Natter said:
Specific skill sets and technical knowledge are needed … as the many and varied participants in the sector position themselves to meet the extraordinary growth in demand for the batteries needed to support renewable power and electrification of transportation.
Looking more broadly, the chair referenced "a challenging market for all companies, especially for emerging growth companies".
He said global events such as COVID-19 and the war in Ukraine have created both challenges and opportunities for Novonix, putting weight on the need for diverse and secure supply chains.
Creating a North American battery materials supply would address such need, said the chair.
On that note, the US Department of Energy has begun to distribute the terms and conditions of Novonix's US$150 million grant. The company is evaluating the terms and will negotiate accordingly.
Its greenfield project's environmental review process will begin subsequently, with further funding applications going ahead concurrently.
