17 May 2024
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Mike Cannon-Brookes taps heaven to take AGL

Peter Switzer
16 November 2022

Atlassian entrepreneur and billionaire Mike Cannon-Brookes is sometimes referred to by his critics as the Double Bay Jesus. Yesterday he pulled off something that years ago would’ve been hailed as a miracle, when he scored a win over the old board of AGL to plant his four independent directors on what will be a very different, very green-inclined board.

In a sense, Cannon-Brookes ‘crucified’ the old board, rendering AGL’s chair, Patricia McKenzie, largely ineffectual going forward.

MCB isn’t only the major shareholder, with 11.3% of the company, he now has a very big influence over the board with the election of his chosen candidates, Mark Twidell, Kerry Schott, Christine Holman and John Pollaers.

Interestingly, Twidell was the only member of the MCB team who was given the green light to join the board, but shareholders have had their way putting all four on the board. Twidell was seen as an experienced energy industry person, while the others were deemed as quality potential directors but inexperienced when it came to the power game.

MCB clearly understands power in its many forms and this victory over the old-world board marries into what we saw at the last Federal election, where seven teal candidates, with a big link to green politics and concerns about climate change, poleaxed the Coalition and the Morrison Government.

The MCB win was emphatic, with Dr Schott receiving nearly 86% of votes in favour of her appointment, Ms Holman with just over 82% and Mr Pollaers about 61%. The new appointees add to another incumbent director of AGL, Miles George, who was a former Clean Energy Council chair.

MCB’s investment vehicle is called Grok Ventures. Yesterday a spokesperson released this statement: "The AGL board has Grok Ventures' full support to deliver on the monumental task ahead, of rebuilding the company to lead Australia's green energy transition, for the benefit of all stakeholders.”

Supporters see this day as a monumental win for shareholder democracy, while others say it’s a case of another billionaire having his way with a public company.

The new team is committed to “closing the Loy Yang coal-fired power station by the end of financial year 2035, as much as 10 years before the company had previously planned, adding up to 12GW of new renewables and “firming” capacity by 2036 at a cost of up to $20 billion, with up to 5GW of that in place by 2030.”

This is a win for the green/renewable believers over the old-world doubters. And the stock market showed its hand by sending the share price down 1.17% yesterday, while the overall market was down only 0.06%.

Time will tell if MCB has more miracles in store for AGL but one thing is for certain, if there are blackouts, he’ll be in the frame for over-believing in the reliability of alternative sources of power.

He also could need a miracle or two for his company Atlassian that’s down 66.4% this year, along with other tech companies, though it was up 8% overnight. So there could be a miracle on its way there too.

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