AGL Energy shareholders yesterdayvoted against the beleaguered Austrailian energy retailer’s remuneration package,delivering a stinging rebuke to its board just one day after Telstrashareholders did the same.
In a non-binding vote, nearlytwo-thirds of AGL shareholders rejected the company’s remuneration policy,which included last year’s $11.2 million package and a $5.7 million exitpayment for dumped chief executive Paul Anthony. He departed after the companylast month issued a large downgrade to its earnings forecast.
AGL Chairman Mark Johnsonsaid it was impossible to comply with shareholder wishes as Mr Anthony hadalready pocketed the money. “The remuneration of Paul Anthony is whataccountants call sunk costs,” Johnson told media after AGL’s annualmeeting in
Many institutional investorsfollowed the recommendation of Institutional Shareholder Services and votedagainst the remuneration report. It is understood ISS expressed severalconcerns to Johnson before yesterday’s meeting, including “excessivetermination arrangements” for Anthony and the board’s decision to awardhim with a maximum short-term incentive payment just two months before thecompany issued the profit warning.
“I’m not surprised at all.That’s what people had been telling us,” Johnson said.
During the meeting, he revealedplans to step down at some point during his next three-year term. Nearly 17 percent of shareholders voted against his re-election as a director.