Cannon-Brookes nominates ex Tesla boss and former ESB chair in AGL board play

Software billionaire Mike Cannon-Brookes has put more pressure on AGL Energy over the make up of its board, announcing a preferred list of four directors to add to the existing five-member board, including a former head of Tesla Energy in Australia, and the former chair of the Energy Security Board.

In a week that has seen radical new policies from the Queensland and Victoria state governments that will hasten the exit of coal fired generators, AGL is coming under increased pressure to name directors who understand the nature of the green energy transition, and can help reset the company’s strategy.

The news came before speculation emerged later on Wednesday evening that AGL is about to announce the early closure of its Loy Yang A coal generator in Victoria, and its Bayswater coal generator in NSW, effectively marking its exit from coal.

The new closure dates – 2035 for Loy Yang A and 2030 for Bayswater – are broadly consistent with the aims of Cannon-Brookes and his then investment partner Brookfield when they launched a bid for AGL earlier this year that was rejected by the company.

Grok Ventures, the private investment vehicle of Cannon-Brookes and his wife Annie that retains an 11.3 per cent stake in AGL after successfully thwarting its controversial demerger, says the board needs a broader range of skills.

It has nominated four additional independent directors, including Mark Twidell, a solar industry veteran and battery storage expert who recently stepped down as head of Tesla Energy in Australia, and Kerry Schott, the former chair of the ESB.

More skills needed at board level

The other directors include independent director Christine Holman, and Professor John Pollaers, the current chancellor of Swinburne University, and the chair of the Australian Financial Complaints Authority.

That may not give Grok outright control of the company, but would underline its heavy influence over the future of the company. And it has the support of other institutional investors.

“In Grok’s view the current Board of five would benefit greatly from new directors who bring different and much needed skills to undertake the urgent transformation of AGL,” a spokesman said in a statement.

“We can see no reason why the current board wouldn’t support having additional skills and experience to work in all shareholders’ interests.”

Grok says it is pleased with the recent appointment of former Infigen Energy boss and Clean Energy Council chair Miles George as a director, but more expertise needs to be added to the board.

G‍rok list backed by other shareholders

This includes experience in turning around and reviving companies and institutions, a deep knowledge of technology that can enable the electrification of homes, including battery storage and electric vehicles, and experience in governance issues.

The push for change is being backed by Sentient, another shareholder seeking change, which notes that many businesses and governments are underestimating the complexity of accelerating the energy transition.

“We believe there are tremendous opportunities for AGL in the energy transition and as impact investors we wish to see the company succeed,” a spokesman said.

“To do so however, it is important that AGL brings in new Board directors with the right experience to enable it to manage the orderly closure of stranded assets, grow its business, while responsibly meeting the needs of customers, staff and the community.

“The directors proposed by Grok will clearly be additive to this Board and have our support and, that of the Impact investors we represent.”

Shift to clean energy

Pollaers said in a separate statement that AGL has the opportunity to lead the transition and accelerate the shift to clean energy sources this coming decade.

“AGL can be a steward in Australia’s energy industry by setting an accelerated plan, with clear dates and executing on it – all while bringing key stakeholders along the journey,” he said.

“However you define ‘turnaround’ or ‘transformation’, this will require experience, strategic pragmatism and a balance of skills relevant to the size of the cultural, organisational, and operational challenge presented.”

The AGL annual general meeting will be held on November 15.

(Note: This story has been updated to correct Christine Holman’s work description).