AGL avoids second strike on pay as Grok Ventures abstains from vote

The news: Energy giant AGL has avoided a second strike against pay at its AGM, as Mike Cannon-Brookes' Grok Ventures abstained from voting on what could have led to a board spill motion, the Australian Financial Review reports.

The numbers: Grok has an 11% stake in AGL, with founder Cannon-Brookes highly critical of energy transition plans at AGL, Australia's biggest greenhouse gas emitter, according to the Clean Energy Regulator. After receiving a first strike vote of at least 25% of shareholder votes at last years AGM, a second strike today would have led to a motion to spill the board. AGL's chair Patricia McKenzie noted the energy giant's underlying profit after tax had increased by 25% in FY23 and projected a net profit after tax of up to $780 million in FY24.

The context: Cannon-Brookes has continued to build a stake in AGL after he lodged a failed takeover attempt with Canadian investment giant Brookfield in 2022. Grok's leadership has continued to criticise AGL for delivering corporate incentives despite unambitious climate targets.