By Fiona Balzer, Policy and Advocacy Manager, and Damien Straker, Advocacy Coordinator
11 November 2022
AGM Season
For AGL Energy’s AGM we will determine our vote for the election Christine Holman and John Pollaers at the AGM and will vote undirected proxies for the other elections. We look forward to the board being determined and the directors being able to knuckle down and work together to bring about the best decision and strategy execution for the company.
Medibank Private is dealing with its massive data breach which is likely to be a hot topic at the meeting. We are supporting the resolutions to be put forward. Similar to the mindset with investing, where there’s little gain from anchoring to the past, and the value of the shares and company is based on the future. At this time the company is focussed on navigating the repair, minimising the harm and keeping all informed.
We also have the voting intention report for The Star Entertainment Group’s AGM which ill be held in the following week. We are supporting all the resolutions put forward, which might surprise ASA members given the disappointing regulatory reports in relation to both NSW and Qld, and deep questions of where to next for the company. The Star was essentially found to be unsuitable to run casino operations with compliance breaches concerning criminal links and money laundering on a wide scale. However, all the directors up for election are recent appointees who are charged with returning The Star to a sustainable level of credibility, probity and profitability and the equity grants are for the recently commencing CEO/MD.
Strike Count for ASA monitored companies
Company/Against vote on remuneration report
Santos 25.32%
Cleanaway 25.49%
ASX 30.52%
Newcrest 36.4%
GUD 41.10%
Blackmores 43.35%
NWR Holdings 49.79%
Newcrest has had its first strike on its remuneration report since 2014, with a suggestion one proxy adviser considered the CEO to be overpaid given the past two years’ financial performance.
Upcoming company meetings
The full list of upcoming AGMs for the rest of the year can be viewed here. Voting intention reports will be available approximately two weeks prior to the AGM date, except where the pre-AGM meeting with directors has been delayed.
SEEK (SEK) AG
In recent years SEEK has, because of a remuneration strike in 2019 and further significant 17% against vote in 2020, tweaked its remuneration structure. It remains, however, sufficiently outside our guideline parameters on several fronts. The Equity Grants, a sort of STI, are not at risk, except following the departure of the KMP We will vote open proxies in favour of directors and the increase in non-executive director’s total aggregate fees. We are unable to support the remuneration report or approval of equity grants to the Managing Director/CEO due to the structure remains, however, sufficiently outside our guideline parameters on several fronts. the Equity Grants, a sort of STI equivalent, are not at risk other than retention in the role, except following the departure of the KMP. Vesting rises linearly to 100% if the CAGR share price is 6% for the 3-year period, namely $28.29. The WSP does not include a financial hurdle or a comparison with peer companies (to test out-performance).
Read the full voting intentions report for Seek here
Flight Centre (FLT) AGM
Flight Centre has come through the pandemic, one of the largest ever challenges to its survival, and is to be commended for doing so. The board has been endeavouring to increase its gender diversity for a few years but that came to a halt with the industry crisis brought on by the pandemic. We also have raised the greater than 15 year tenure of the Chair. He has been on the board of Flight Centre since 2007 and for this reason, ASA no longer considers him an independent director. Happily, a new well-qualified director, Kirsty Rankin, was added in August 2022. We are supporting all the resolutions.
Read the full voting intentions report for Flight Centre here.
In case you missed it
Allkem Limited (AKE) AGM Read the full voting intentions report for AKE here
Northern Star Resources (NST) AGM Read the full voting intentions report for NST here
Vicinity Centres (VCX) AGM Read the full voting intentions report for VCX here
Beach Energy Limited (BPT) AGM Read the full voting intentions report for BPT here
Mineral Resources (MIN) AGM Read the full voting intentions report for MIN here
Seven Group Holdings Limited (SVW) Read the full voting intentions report for SVW here
IGO Limited (IGO) AGM Read the full voting intentions report for IGO here
NIB Holdings Limited (NHF) AGM Read the full voting intentions report for NHF here
Pilbara Minerals Limited (PLS) AGM Read the full voting intentions report for PLS here
Lendlease Group (LLC) AGM Read the full voting intentions report for LLC here
Shopping Centres Australasia Property Group (SCP) AGM Read the full voting intentions report for SCP here
BlueScope Steel (BSL) AGM Read the full voting intentions report for BSL here
Austal Limited (ASB) AGM Read the full voting intentions report for ASB here
Qube Holdings Limited (QUB) AGM Read the full voting intentions report for QUB here Read the full voting intentions report for QUB here-against re-election of Alan Miles as director due to four directors with very long tenure
Lynas Rare Earths Limited AGM Read the full voting intentions report for LYC here
Liontown Resources Limited (LTR) AGM Read the full voting intentions report for LYC here
-against re-election of Anthony Cipriano as director as he chairs the board but his independence is clouded by his shareholding and consulting agreement. Appointment of a lead independent director would be positive.
