Media release

AGL Energy directors lack skin in the game

The Australasian Centre for Corporate Responsibility​ (ACCR) is challenging AGL Energy (ASX:AGL) directors’ claims that the takeover bid by the Brookfield consortium does not represent fair value for shareholders, based on their own lack of investment in the company.

  • CEO Graeme Hunt has been paid $3.7m in the 9.5 years he's been on the board, but has spent just $234,550 of his own money on purchasing AGL shares, which are now worth ~$92,000 (he was awarded 17,975 shares in August 2021 and 297,374 shares in October 2021 at nil cost as an incentive);
  • Graeme Hunt last purchased AGL shares on 10 September 2018 at a price of $19.66;
  • Chair Peter Botten last purchased AGL shares on 1 September 2020 at a price of $14.84;
  • Other than Graham Cockroft who only joined the board on 1 January 2022, and Jacqueline Hey who acquired a small number of shares via the dividend reinvestment scheme, no other director has purchased AGL shares since 1 September 2020;
  • From its high of $27.61 in May 2017, AGL has fallen ~73% to yesterday's close of $7.36 (excluding dividends), which is below the Brookfield bid of $7.50;
  • The base fee for AGL directors is $201,000 p.a., and many investors accept the rule of thumb that directors should have a minimum of one years’ fees invested in the company.

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“If the AGL directors believe the company is worth $9 or $10 a share, why on earth haven’t they been buying the stock, when it’s trading between $7-7.50?

“CEO Graeme Hunt has claimed that the Brookfield consortium should be offering a 30% premium to the current share price.

“If Hunt genuinely believes the company is worth that much, why has he not spent his own money on AGL shares since September 2018, despite receiving millions in remuneration since?

“Only Graham Cockroft, who joined the board in January, has purchased stock on-market since AGL fell below $10.

“The board of AGL has overseen a catastrophic decline in the share price of more than 70% since its highs in 2017. The board has watched like a deer in headlights at the erosion of the share price.

“The current directors have fundamentally mismanaged the energy transition, yet are asking shareholders to ‘trust them’ on the demerger. Shareholders should rightly be skeptical.

“The lack of ‘skin in the game’ from AGL directors suggests that institutional investors and retail shareholders are bearing the cost of the board’s poor decision making.”


Chair and CEO holdings compared to AGL Energy share price, 2012-22

AGL Chair and CEO holdings compared to AGL Energy share price, 2012-22

*Excludes Graeme Hunt’s performance rights awarded at nil cost

AGL Energy directors shares held and fees paid, 2012-22

NameRoleAppointedShares heldValueFees paid
Graeme HuntCEO1-Sep-201212500$92,000$3,679,919
Jacqueline HeyDirector21-Mar-201612479$91,845$1,355,622
Diane Smith-GanderDirector28-Sep-201610962$80,680$1,206,613
Peter BottenChair21-Oct-201611390$83,830$1,135,182
Patricia McKenzieDirector1-May-20198465$62,302$535,537
Mark BloomDirector1-Jul-20207000$51,520$244,378
Graham CockroftDirector1-Jan-202220000$147,200NA
Vanessa SullivanDirector1-Mar-20220$0NA

Trades by AGL Energy directors, 2012-22

1-Sep-2012Initial director's interest noticeGraeme Hunt0$0.00$0
2-Oct-2014Change of director's interest noticeGraeme Hunt1500$13.47$20,205
21-Mar-2016Initial director's interest noticeJacqueline Hey0$0.00$0
20-Apr-2016Change of director's interest noticeJacqueline Hey2170$18.39$39,906
26-Aug-2016Change of director's interest noticeGraeme Hunt2500$19.07$47,675
28-Sep-2016Initial director's interest noticeDiane Smith-Gander0$0.00$0
21-Oct-2016Initial director's interest noticePeter Botten0$0.00$0
13-Feb-2017Change of director's interest noticeDiane Smith-Gander2750$24.67$67,843
14-Feb-2017Change of director's interest noticeJacqueline Hey1250$24.56$30,694
27-Mar-2017Change of director's interest noticeJacqueline Hey57$24.81$1,414
4-Apr-2017Change of director's interest noticeDiane Smith-Gander1920$25.98$49,882
22-Sep-2017Change of director's interest noticeJacqueline Hey74$23.91$1,769
15-Dec-2017Change of director's interest noticeJacqueline Hey4000$24.57$98,280
26-Mar-2018Change of director's interest noticeJacqueline Hey190$21.55$4,095
10-Sep-2018Change of director's interest noticeGraeme Hunt8500$19.66$166,670
10-Sep-2018Change of director's interest noticePeter Botten5000$19.61$98,050
21-Sep-2018Change of director's interest noticeJacqueline Hey240$20.47$4,913
22-March-2019Change of director's interest noticeJacqueline Hey205$21.50$4,408
1-May-2019Initial director's interest noticePatricia McKenzie0$0.00$0
12-Aug-2019Change of director's interest noticeDiane Smith-Gander2000$19.07$38,140
12-Aug-2019Change of director's interest noticePatricia McKenzie3900$19.10$74,506
13-Aug-2019Change of director's interest noticeJacqueline Hey2100$18.89$39,669
20-Sep-2019Change of director's interest noticeJacqueline Hey350$18.88$6,608
26-Sep-2019Change of director's interest noticePeter Botten2500$18.80$47,000
27-Mar-2020Change of director's interest noticeJacqueline Hey275$18.22$5,011
5-May-2020Change of director's interest noticeDiane Smith-Gander1792$16.78$30,070
8-May-2020Change of director's interest noticePatricia McKenzie4565$16.43$75,003
1-Jul-2020Initial director's interest noticeMark Bloom0$0.00$0
17-Aug-2020Change of director's interest noticeDiane Smith-Gander1500$15.34$23,010
26-Aug-2020Change of director's interest noticeMark Bloom7000$14.91$104,384
1-Sep-2020Change of director's interest noticePeter Botten1500$14.84$22,261
25-Sep-2020Change of director's interest noticeJacqueline Hey374$14.97$5,599
26-Mar-2021Change of director's interest noticeJacqueline Hey484$9.60$4,646
18-Aug-2021Change of director's interest noticeGraeme Hunt17975*$9.20$0
29-Sep-2021Change of director's interest noticeJacqueline Hey668$6.01$4,015
29-Oct-2021Change of director's interest noticeGraeme Hunt297374*$0.00$0
2-Nov-2021Change of director's interest noticeJacqueline Hey0**$6.09$0
1-Jan-2022Initial director's interest noticeGraham Cockroft0$0.00$0
15-Feb-2022Change of director's interest noticeGraham Cockroft20000$7.12$142,400
1-Mar-2022Initial director's interest noticeVanessa Sullivan0$0.00$0

*Awarded at nil cost as part of CEO package

**Transfer of holdings

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