The AGL Energy Ltd (ASX: AGL) share price is down after the energy business announced changes to its board.
Board changes
The business’ leadership has been under the microscope as the company aimed for a demerger between its energy generation assets as well as its retailing divisions.
The board also rejected a takeover approach from Brookfield and Mike Cannon-Brookes, who believed that the business would be better off sticking together and accelerating investment into going greener, such as renewable energy.
Chairman Peter Botten has decided to step down from the board, with current board member Patricia McKenzie replacing him as chair, effective today. She was previously the Chair of Essential Energy, a director of APA Group (ASX: APA) and has had roles in other energy businesses.
Miles George will join the board from today as an independent non-executive director. This appointment came after an “externally facilitated search for a director experienced in renewable energy project delivery”.
Managing Director and CEO Graeme Hunt will finish his role on 30 September 2022, which is when chief financial officer Damien Nicks will take up the role of interim CEO, with finance and energy executive Gary Brown replacing him as interim chief financial officer.
The process for appointing a new CEO is continuing as planned and there is currently a short list of Australian and global candidates.
Leadership comments
The new chair, Patricia McKenzie, said:
I would like to acknowledge and thank Peter Botten for his significant contribution as a member of the AGL Board over the past six years, including as Chairman over a challenging 18 months. I would also like to acknowledge and thank Diane Smith-Gander for her outstanding contribution to the board over the past six years, including as Chair of the People & Performance Committee.
Mr George’s appointment as Non-Executive Director will enhance AGL’s renewable energy credentials and leadership to help drive further the deployment of renewable and firming technologies required for the decarbonisation of AGL’s energy portfolio. We are delighted to welcome Miles to the Board and look forward to working with him.
Final thoughts on the AGL share price
AGL has suffered a lot. Over the past five years it’s down 70%. Could it recover? A takeover would certainly help. The current price is below the offer price, so it seems like there’s a bit of potential value there.
However, it’s not the sort of business I’d see myself holding for many years. I think there are plenty of ASX dividend shares with more growth potential.
