AGL Energy chief sold $1.2m of shares before meeting Turnbull
AGL Energy chief Andy Vesey offloaded $1.24 million of company shares before yesterday’s meeting with Malcolm Turnbull.
AGL Energy chief executive Andy Vesey offloaded $1.24 million of company shares in the lead-up to yesterday’s meeting with Malcolm Turnbull, where the power boss said he would investigate selling or extending the life of the Liddell coal-fired power station in NSW.
The American chief executive, who took on the role in January 2015, turned some of his paper gains into cash after AGL’s shares jumped 50 per cent in the past year on the back of higher power prices. In a notice to the stock exchange, AGL said Mr Vesey had sold 50,000 ordinary shares on Friday at a price of $24.82 each.
The sale was made on the business day before yesterday’s meeting with the Prime Minister to discuss the future of the Liddell coal-fired power station.
Mr Vesey wants to close what will then be a 50-year-old power plant in 2022, while the government is pushing AGL to extend its life or sell it.
An AGL spokeswoman last night said the shares had been sold to fund tax obligations arising after Mr Vesey had been awarded performance rights.
It leaves him with 376,229 ordinary AGL shares, valued at $9.3m at yesterday’s closing share price of $24.75.
The energy boss made a similar sale last September, when he sold 50,000 shares at a price of $19.30 for a total of $965,000.
In the 2016-17 financial year, Mr Vesey received total remuneration of $6.9m, down slightly from $6.94m the previous year.
Mr Vesey was employed on fixed remuneration of $1.95m, which was raised to $2.1m in 2015-16 and again to $2.3m last September.
AGL, which generates the bulk of its earnings from operating coal-fired power plants, suffered an embarrassing investor backlash at its annual meeting last September when investors gave a “first strike” against the company’s remuneration report by voting more than 25 per cent of shares against it.
If there is a second strike at this year’s annual meeting, it will trigger a vote on all directors.
However, the company’s performance in the past year, during which higher wholesale power prices have sent profit up and shares soaring 50 per cent, makes that less likely.
Wholesale power prices have surged to what most are calling crisis levels.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout