Time for re-set: AGL’s new chair Patricia McKenzie to staff

AGL Energy’s new chair, Patricia McKenzie, has told staff it is time for a re-set of the 185-year-old company.

AGL Energy’s new chair, Patricia McKenzie, has told staff it was time for a re-set of the 185 year-old company after its biggest shareholder, Mike Cannon-Brookes, voiced reservations over her appointment.

The nation’s largest power generator has suffered a torrid year after a plan to reinvent the utility through a demerger was foiled following a high-profile campaign by its billionaire investor.

The company’s first pick for chair, Paula Dwyer, was rejected by major institutional shareholders over concern she may fail to execute a green transition and Ms McKenzie said it was now time to re-set the electricity player.

“Over the past 18 months, we have experienced a lot of change, and this has brought with it a lot of uncertainty,” Ms McKenzie wrote in an email to AGL staff.

“As we prepare to announce the outcomes of our review of strategic direction, it’s time we reset and start looking forward with a united and clear direction with stable and experienced leadership.”

“The challenge we face – to redesign our energy portfolio and accelerate the pace of decarbonisation – is not an easy or a unique one, but we are committed to getting it done.”

AGL Energy’s new chair, Patricia McKenzie, has told staff it was time for a re-set of the 185 year-old company after shareholder Mike Cannon-Brookes voiced reservations over her appointment. Picture: Brendan Beckett/NCA NewsWire

The tech mogul said his investment firm, Grok Ventures, may vote against Ms McKenzie’s re-election at this year’s annual general meeting in protest.

Top 10 shareholder Van Eck said Ms McKenzie was a “reasonable” candidate.

“I wouldn’t say she is the ideal one but I don’t think anyone has identified someone who would meet every requirement,” Van Eck’s Jamie Hannah said.

“We haven’t been involved in the selection process and don’t hold strong views on the best candidate. I don’t believe they have a large pool of candidates to choose. It’s more important that the strategic review is completed and the new management implement the changes.”

AGL is due to issue a strategy update before the end of September.

The Australian Shareholders Association said the next step for the chair was to create a well-balanced board.

“The new chair will need to ensure that AGL has a diverse mix of skills on the board to oversee a successful new strategy and appoint a CEO who can implement the strategy and a massive transition,” ASA chief executive Rachel Waterhouse said.

AGL shares rose 0.9 per cent to $7.03 on Tuesday.