Heat rises at AGL Energy
Pressure after pay strike
PRESSURE has grown on AGL Energy chair Patricia Mckenzie after Mike CannonBrookes won a bid to install four new directors and the power giant suffered a first strike on pay, signalling fresh shareholder angst after a tumultuous year that saw a clear-out of its board after its demerger was dumped.
The latest win for the billionaire, AGL’S largest shareholder, followed an acrimonious battle to refresh the company’s board and hasten a move to green energy with the early closure of the company’s giant coal plants.
The tech titan prevailed against Ms Mckenzie with the quartet of Mark Twidell, Kerry Schott, Christine Holman and John Pollaers to join as new members of the board, three of whom AGL had rejected as suitable candidates.
Only Mr Twidell had been endorsed by AGL, with the three others rejected due to a lack of experience and skills to implement its strategy.
A further unexpected blow also arrived ahead of the AGM after Ms Mckenzie suffered a first strike on executive pay.
Australia’s largest electricity generator with 4.2 million customers said it was disappointed by the backlash on remuneration after shareholders voted ahead of its annual general meeting on Tuesday.
The result was unexpected given major proxy advisers – who collectively influence about 30 per cent of AGL shares on issue – had backed the pay report.
Ms Mckenzie said it was “a disappointing result” but they would “take this outcome into account when we review our remuneration structure during FY23”.
A first strike occurs when 25 per cent or more of shareholders vote against a company’s remuneration report.
The green activist, AGL’S largest shareholder, has staged a high-profile campaign through his privately owned Grok Ventures to refresh the board amid a broader effort to accelerate a transition to renewables.
It is now expected there will be nine members on AGL’S board.
The new directors are expected to focus on finding a new chief executive to lead the company, boost the unity and stability of the board and accelerate the company’s green push while making practical steps to put its carbon transition action plan in place.
The AGL chair said there was a shortlist of Australian and global candidates for the CEO role, filled in the interim by Damien Nicks.
Questions are also expected to be asked by shareholders over the board’s rejection of two takeover bids by Mr Cannon-brookes and Brookfield back in February at $8.25 a share and $7.50 respectively.
Brookfield then teamed up with private equity player EIG and subsequently switched its attention to AGL’S chief rival, Origin Energy, with an $18.4bn bid disclosed last Thursday.