King exits BHP board after revolt

Grant King has quit the BHP board after an investor backlash, as Terry Bowen and John Mogford step up.

Business Council of Australia President Grant King is stepping down from the BHP board. (Hollie Adams/The Australian)

Shareholder activism has scored another coup with Grant King voluntarily stepping aside from the BHP board in the wake of the reality that at least 40 per cent of the share register would vote against him.

Another director facing problems at home, Shell’s Malcolm Brinded, has also stepped aside, with two newcomers set to join the firm: outgoing Wesfarmers CFO Terry Bowen and BP’s John Mogford.

The moves follow Ken MacKenzie’s appointment as chair replacing Jac Nasser and this week’s news confirming the company’s intention to sell its US shale assets.

The protests against King started when he was first appointed and was made all the more difficult because he is also the head of the Business Council of Australia (BCA).

It is not a good look for the peak business lobby to have as its chief someone who is being targeted by shareholders as being not suitable for a board post.

The campaign against King was centred on his time at Origin, focusing on the last couple of years when falling oil prices resulted in massive writedowns of its Gladstone LNG project.

BHP shareholders appeared to overlook the previous 20 years during which he helped create an integrated energy giant from his days at Boral to Origin’s listing in 2000.

Grant King was a superstar of Australian business who stayed in his job too long and paid the price.

His decision to step aside from BHP (BHP) was his own choice and typifies the sort of person he is by opting to put the company first.

But it does leave him and the BCA in a difficult position given the high profile of the campaign against him and his subsequent resignation.

From the perspective of board renewal at BHP, today’s news is a welcome development even if King had not even served 12 months on the board.

The company has annual elections which makes board renewal a lot easier.

Shareholders will also be emboldened by the move which shows their voice has some clout in the boardroom which is of course how it should be given they own the company.