Power giant’s leader is out

AGL Energy has confirmed chief executive Brett Redman has resigned after just 30 months in the role, with the outgoing boss saying he could not commit to spending another five years in the role once a demerger takes place.

The bombshell move will see chairman Graeme Hunt take over as interim chief executive.

Former Oil Search boss Peter Botten, a director of AGL, will replace Mr Hunt as chairman.

Sources said Mr Redman (pictured) during board meetings on Wednesday afternoon was unable to commit to the role given a potential demerger that was likely to split the company in two.

“Mr Redman has advised the board that he believed he could not make a long-term commitment beyond the proposed structural separation announced on March 30, 2021,” AGL said in a statement.

“As a result, the board agreed it was appropriate to put in place alternative leadership arrangements now to facilitate the proposed structural separation. Mr Redman’s resignation as a director is effective immediately but he will remain available to AGL until the expiry of his notice period on October 21, 2021.”

AGL shares sank 4.2 per cent in early trade following the announcement.

Mr Redman had been widely expected to lead either New AGL or PrimeCo under a proposed split of the company and his abrupt departure after just 30 months as chief executive has raised concern over the company’s strategy and the likely success of the mooted separation. “I’ve been in the thick of it for a long time and I’ve always felt in my executive career I would want to do something else before I hunt up the boots and I figured that might be at the end of this role,” Mr Redman said. “CEO roles generally go for four or five years — so there’s a couple of years in it — and at that point I’d face into what do I want to do next.

“The separation strategy — I initiated it, presented it, developed it and continue to champion it — is the right proposition and is supported by the board.”

AGL had promised to update the market in June on the likely chief executives who could head up the two businesses, meaning decisions are starting to take shape now ahead of that decision, according to Mr Redman.

AGL has been holding talks with shareholders in the past few weeks to create two ASXlisted companies through a demerger after splitting its retail and supply arms to form a green electricity retailer and generation giant dominated by coal power.

Mr Redman said he was pleased to have established the case for separating the businesses.

“After almost 15 years with AGL, I am proud of the contribution I have made,” Mr Redman said.