Cannon-Brookes,AGL’s largest shareholder who walked away from an attempt at acquiring the company last year,has been campaigning for an overhaul of the company’s board as part of his quest to decarbonise the company. His personal investment vehicle Grok has put forth four candidates for director’s seats at next month’s AGM:Professor John Pollaers OAM,Christine Holman,Dr Kerry Schott AO and Mark Twidell.
Mike Cannon-Brookes’ Grok Ventures is the biggest shareholder in giant electricity provider AGL Energy.Renee Nowytarger
AGL has rejected three of the proposed candidates but endorsed Twidell,a former Tesla executive.
“To execute on the decarbonisation opportunity,AGL needs the right directors on its board,” the Atlassian founder said in a letter to shareholders. “Directors who can deliver inspirational thinking to return AGL to its leadership position in energy retailing and generation”.
AGL’s chief executive officer Graeme Hunt,and two non-executive directors resigned in May after the company scrapped plans to split its retail power business from its wholesale generation business following pressure from shareholders,led by Grok.
McKenzie – a proponent of the failed demerger – became chairman in September,an appointment that was heavily criticised by Grok at the time.
But in an apparent change in tune,Sunday’s letter from Cannon-Brookes calls on shareholders to re-elect her as chairperson in addition to voting for the other director candidates proposed by the AGL board:Graham Cockroft,Vanessa Sullivan and Miles George.
The letter argues the current board is still “not up to the challenge” of delivering on the company’s potential,pointing out four out of five directors advocated for the failed demerger.
“Without expanding the size,diversity and skills of the Board,we believe AGL will continue to fall behind the rapidly transforming energy industry,and further destroy shareholder value,” Cannon-Brookes wrote.
Pollaers is the chancellor of Swinburne University of Technology and the chair of the Australian Financial Complaints Authority. Schott is the ex-chair of the energy Security Board and is touted by Grok as bringing “unrivalled credentials,experience and relationships with government,business and regulatory stakeholders”. Holman is a non-executive director on three ASX listed groups,Metcash,Collins Food and CSR.
An AGL spokesperson said while the board acknowledged the skills and experience of the other Grok candidates,“we do not believe they will provide the further experience and skills necessary to ensure the successful implementation of the board’s strategy”.
The spokesperson said it would be “disappointing to many” that Grok were not advocating shareholder support for the Climate Transition Action Plan (CTAP).
“AGL board’s CTAP aligns to AEMO’s[Australian Energy Market Operator] stated position,and the sector has noted it is not an easy task to deliver and we need a co-ordinated approach. The successful implementation of the action plan will be required to meet current widely agreed and accepted goals.
“We share the ambition of our many shareholders for decisive action on climate change as well as a strong and sustainable AGL.”
AGL appointed George,a former chair of the Clean Energy Council,to the board in September. At the time,Grok welcomed the appointment but expressed disappointment McKenzie elevated herself despite a lengthy recruitment process.
In August,AGL said it was aware of significant shareholder pressure for its as the strategic review into the company’s future headed into its final weeks.
AGL’s coal-fired power stations account for about 8 per cent of. Since the demerger proposal was abandoned,some of AGL’s biggest for earlier coal plant closures.
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