Another clash looms for Mike Cannon-Brookes and AGL over board appointments

Mike Cannon-Brookes owns more than 10 per cent of AGL, which has rejected three of his four board nominations. Photo: TND
Australiaās biggest electricity company AGL has rejected three of the four experts nominated for the board by billionaire shareholder Mike Cannon-Brookes.
Seeking a change of strategy and culture, his Grok Ventures investment firm put forward four independents for election to the board: former energy regulator Kerry Schott, sustainability expert Christine Holman, Teslaās Mark Twidell and experienced board chair John Pollaers.
In a letter to shareholders on Friday, AGL endorsed Mr Twidell but not the others.
AGL chair Patricia McKenzie said it was āunusualā for a non-controlling shareholder (11.28 per cent) to nominate four candidates.
āThe board is of the view that appointing all four of the Grok candidates would not add to the overall effectiveness of the board,ā she said.
Grok Ventures welcomed the endorsement of Mr Twidell but warned the transformation task ahead of AGL as Australiaās biggest carbon emitter cannot be underestimated.
āMakes no senseā
āIt makes no sense to us ā or a growing list of shareholders ā that the board is rejecting highly-qualified, independent directors who are committed to helpingĀ them make AGL the leading green gentailer in the world,ā a Grok spokesman said.
āWe disagree that the incumbent directors have the breadthĀ of skills required to execute on this transition,ā he said.
āThey quite simply need more help, particularly with execution which has been underwhelming to this point.ā
This year Mr Cannon-Brookes scuppered the energy giantās planned demerger, which would have created a power retailer and hived off ageing coal-fired operations that would have operated for longer.
Readying for another showdown at the annual general meeting next month, Grok said it would continue to push the nominations of Dr Pollaers, Dr Schott and Ms Holman.
āTo be clear, as AGLās largest shareholder, Grok is committed to working with the Board to help effect the necessary changes and make the most of the decarbonisationĀ opportunity,ā the spokesman said.
āPart of this commitment was to help find independent director candidates with the skills the company requires for this transition.ā
Grok said it would be campaign directly with AGLās 150,000 shareholders in the lead up to the meeting scheduled for November 15.
Shareholders will also vote on AGLās climate transition plan.
-AAP








