Mike Cannon-Brookes to back new AGL board members in bid to clean up climate polluter
Tech billionaire and climate activist Mike Cannon-Brookes will back four new members to the board of AGL in his latest bid to steer Australia’s biggest power generator and carbon polluter towards a lower emissions future.
Cannon-Brookes, who in May used his clout as AGL’s largest shareholder to block AGL’s plans to split into two companies, will support the four independent non-executive directors to transform the company, according to a media release by his family company, Grok Ventures.
The four include Kerry Schott, the former chair of the Energy Security Board, Prof John Pollears, CSR board member, Christine Holman, and solar energy veteran, Mark Twidell.
“Grok believes the AGL Board needs to expand to include a broader range of skills, expertise and capabilities to reset the strategic direction and culture of this historic company,” the statement said, referring the 185-year-old firm.
“In Grok’s view the current board of five would benefit greatly from new directors who bring different and much needed skills to undertake the urgent transformation of AGL,” it said.
The missive came on the eve of AGL’s plan to release its updated strategy to the sharemarket on Thursday.
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Cannon-Brookes, whose fortune derives mostly from his co-founding of software services giant Atlassian, earlier this month objected to the choice of Patricia McKenzie as the new chair of AGL “given her involvement in the failed demerger”.
AGL has faced a year of turmoil include seeing off a takeover bid led by Cannon-Brookes and Canadian asset manager Brookfield in February and March.
The company had sought to demerge into a mostly retail arm and a company with its remaining coal-fired power plants.
AGL’s Liddell power plant in the New South Wales Hunter Valley will fully close by next April. According to plans announced in February, the neighbouring Bayswater plant was to close “no later than 2033” while its Loy Yang A power station in Victoria’s Latrobe Valley would run until 2045.
Cannon-Brookes has said he wants
AGL to exit all coal by the mid-2030s.
The four new board candidates would be voted on at AGL’s annual general meeting, planned for 15 November.
AGL chair, Patricia McKenzie, said the company shared “the ambition of our many shareholders for decisive action on climate change as well as a strong and sustainable AGL”.
“AGL respects the right of shareholders to nominate candidates for election as directors.”
She said the board’s recommendation on each resolution to be considered at the AGM will be published in October.
Two other shareholders, Sentient and Snowcap, issued statements in support of the board nominations.
“Sentient considers that businesses and governments are underestimating the complexity of accelerating the energy transition,” a spokesperson said.
“We believe there are tremendous opportunities for AGL in the energy transition and as impact investors we wish to see the company succeed,” the spokesperson said. “To do so however, it is important that AGL brings in new board directors with the right experience to enable it to manage the orderly closure of stranded assets, grow its business, while responsibly meeting the needs of customers, staff and the community.”
Similarly, Chris Kinnersley from Snowcap, said AGL’s board “urgently requires fresh ideas and a renewed culture of excellence”
“We believe the shareholder nominees provide the relevant experience critical for navigating a successful turnaround,” he said.
AGL’s share price rose almost 3% on Wednesday to $6.60, outperforming the overall market, which slid by 0.5%.