Mike Cannon-Brookes wins backing for AGL Energy board battle

A third major proxy adviser has backed directors proposed by the Atlassian billionaire, the energy giant’s largest shareholder.

Mike Cannon-Brookes has received strong support in his bid to add high profile names to AGL Energy’s board, after two influential proxy advisers backed the election of several directors proposed by the billionaire.

The green activist, AGL’s largest shareholder, has staged a high-profile campaign through his privately owned Grok Ventures to refresh the board amid a broader effort to accelerate a transition to renewables.

Ownership Matters has backed the election of Kerry Schott, Christine Holman and Mark Twidell to AGL’s board at its looming annual general meeting on November 15.

However, it has not recommended a vote in favour of a fourth candidate John Pollaers.

Institutional Shareholder Services on Wednesday backed the election of all four directors proposed by the tech titan.

The proxy advisers collectively influence about 30 per cent of AGL shares on issue, suggesting the green activist will likely prevail over AGL which in only in favour of Mr Twidell’s election.

It signals Mr Cannon-Brookes may win another high stakes battle with the 185-year-old utility after previously derailing its demerger, sparking the exit of both its chief executive Graeme Hunt and former chairman Peter Botten.

Mr Twidell is a former Tesla executive while Ms Schott chaired the government’s Energy Security Board. Christine Holman is a director of Metcash and CSR and John Pollaers is chair of the Australian Financial Complaints Authority.

AGL had rejected three of the four directors proposed by Mr Cannon-Brookes, saying they didn’t have the experience and skills necessary to successfully implement the company’s strategy.

The Australian Shareholders Association also weighed in, backing Mr Twidell and Ms Schott while remaining undecided on whether Ms Holman and Mr Pollears should also make the cut.

The ASA said it will ask the pair to address AGL’s AGM and explain why each were a good choice for the board before deciding which way it will vote.

It notes Ms Holman’s full workload and said in a meeting with the ASA that she had vowed to resign from one of her positions if successful.

ISS also cautioned that it would only recommend a “qualified” vote for the election of chairman Patricia McKenzie due to governance concerns. It noted that as a AGL director since 2019, Ms McKenzie participated in the strategic decisions that led to the proposed demerger that was subsequently axed following pressure from Mr Cannon-Brookes.

Billionaire Mike Cannon-Brookes has staged a high-profile campaign to refresh the AGL board.

It pointed to significant costs, board and management upheaval and a revised strategic direction while Ms McKenzie was on the board.

Proxy adviser CGI Glass Lewis on Monday had called for the election of Ms Schott and Ms Holman to the board, but rejected Mr Pollaers.

ISS said support for Ms Schott, Ms Holman and Mr Pollaers was justified. It also supported the election of directors Graham Cockcroft, Vanessa Sullivan and Miles George

“The reasons for support include that they are independent directors, they have relevant and appropriate skills and experience which shareholders may consider with benefit board deliberations, and the company and shareholders as a whole, and that their skills and experience would satisfy AGL’s stills matrix for directors at a superior level,” ISS said.

AGL Energy shareholder Mike Cannon-Brookes wants a string of new directors elected to its board. Picture: Asanka Ratnayake/Getty Images

It noted AGL directors had said Ms Holman had extensive board commitments and shareholders may expect her to address her workload if elected to the board of AGL while adding Mr Pollaers had experience in leading large-scale corporate transformations across a range of multidimensional and complex industries.

Mr Pollaers has previously told The Australian that AGL’s board had suffered from a conservative outlook and a fear of reinventing its strategy – and required a complete overhaul.

ISS also recommended a vote in favour of AGL’s climate transition action plan, noting it was detailed and included a transition strategy as it retires its large coal stations at Loy Yang in Victoria and Bayswater in NSW’s Hunter Valley.

AGL was hit by a backlash on climate change at its 2021 annual general meeting after more than half of investors demanded steeper carbon cuts, a result ­hailed by Grok as a defining moment for Australia’s climate ambitions.

Grok has told shareholders to vote against AGL’s climate plan this year, saying it targeted a strategy that aligns with a 1.8 degree global warming target rather than a 1.5 degree goal.

AGL, led by Damien Nicks on an interim basis, has said it would be “disappointing to many” that Grok was not backing its climate scheme, which would go to a non-binding vote at the AGM.

Originally published as Mike Cannon-Brookes wins backing for AGL Energy board battle