Billionaire Cannon-Brookes gains ground in bid to revamp AGL board
Tech billionaire Mike Cannon-Brookes’ push to install new directors to AGL has won the backing of an influential shareholder adviser, lifting the climate activist’s chances of refreshing the leadership of Australia’s heaviest greenhouse gas emitter when investors vote in two weeks.
Cannon-Brookes’ privately owned Grok Ventures, which is now AGL’s largest shareholder, has put forward four director nominees for the AGL board ahead of its annual meeting, including former Energy Security board chair Kerry Schott, Swinburne University chancellor John Pollaers, CSR director Christine Holman and former Tesla Energy director Mark Twidell.
The board has told investors it would only support Twidell’s candidacy, sparking a new stoush with Cannon-Brookes ahead of the meeting set for November 15.
“With the other nominees, they clearly have strong skill sets and backgrounds, but they are not skill sets and backgrounds that we believe will add to those on the board already,” AGL chairman Patricia McKenzie said last month.
However, in a new report sent to investors, major proxy advisory firm CGI Glass Lewis urges investors to back the candidacies of Schott and Holman as well. The firm, which advises institutional shareholders how to vote on board appointments, executive pay and a range of other corporate matters, said the additional two candidates had skill sets that would add to the diversity of experiences and perspective in the boardroom and ensure AGL could meet the significant challenges that lie ahead.
Grok on Monday said CGI Glass Lewis and a “growing number of retail and sophisticated shareholders” agreed with its push to renew the board.
“This board needs renewal, more relevant skills and fresh thinking,” a Grok spokesperson said. “All four independent candidates are desperately needed to meet the opportunity ahead for AGL.”
Earlier this year, Cannon-Brookes mounted a successful campaign to prevent the AGL board from splitting off its coal-fired power stations from its retail division, a plan he argued would create two smaller entities less-able to accelerate the closures of coal-fired power stations in line with global efforts to avert catastrophic global warming. The campaign ultimately forced the resignations of several AGL directors, including its chairman and chief executive, and triggered a strategic review into the power giant’s direction. This month, AGL said it would bring forward the closure of its last-remaining coal-fired power station to 2035, up to a decade earlier than planned.
The Glass Lewis report ahead of AGL’s meeting in November recommends shareholders support AGL’s remuneration report and its new climate transition action plan, which now contains accelerated decarbonisation targets and the earlier exit from coal.
“We welcome CGI Glass Lewis’ support for the AGL board nominated candidates, our climate transition action plan and the remuneration report,” McKenzie said on Monday. “AGL shares the ambition of many of our shareholders to increase the pace of decarbonisation, and it is particularly pleasing to see CGI Glass Lewis’ recommendation that shareholders vote in favour of it.”
McKenzie said the board “respectfully acknowledges” CGI’s recommendation that shareholders vote in favour of electing Schott and Holman.
“While we acknowledge the skills and experience of these two candidates, we do not believe they will provide the additional experience and skills necessary to ensure the successful implementation of the board’s strategy,” she said. “Ultimately, it is a matter for shareholders.”
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Source: Thanks smh.com