10 questions lodged at 2022 CSR AGM
January 8, 2023
The following 10 questions were lodged at the 2022 CSR AGM and all but the last one asked, albeit with some being shortening. Also, see this pre-AGM email and this response from chairman John Gillam, plus archive of AGM webcast.
1. We've got a power supply agreement with AGL through until 2028 for the Tomago aluminium smelter. Did we have a view on the proposed AGL demerger and what can you tell us about the terms of the current agreement. Are we fully protected from the current spot market fluctuations and is our power bill likely to rise after 2028. What also is the history of power supply agreements at Tomago dating back to when all power generation in NSW was state-owned?
Answer: Won't comment on AGL but Tomago is one of the best aluminium smelters in the world which we hope to be involved with for many years to come. Few people realise Tomago is like a reverse battery for the whole of NSW. Watch this video of his two minute response.
2. Given the interesting discussions across a range of topics today, could the chair undertake to make a full transcript of proceedings available on the company's website? Transparent companies like Insurance Australian Group have been publishing AGM transcripts since 2003, but we've never done one and also remove the webcast archive after 12 months. Please build up your online AGM archive and also start publishing transcripts from 2022 onwards. The likes of Afterpay, AGL Energy, ASX, CIMIC, Domino's, Freedom Foods, Lend Lease, Mineral Resources, Mirvac & Nine all produced their 1st AGM transcripts last year. Will CSR follow suit today in order to be as transparent?
Answer: no.
3. Why are we continuing with the practice of only disclosing the remuneration arrangements of 2 executives. The chair John Gillam hails from Wesfarmers/Bunnings, which last year published the details of 4 Wesfarmers executives. Why do we take such a minimalist approach and please name other ASX200 companies which only disclose 2 KMP packages in the remuneration report.
Answer: the italicised bit wasn't asked and chair Gillam said this was the practice before he arrived 4 years earlier and he would not be changing it. Watch video of exchange via Twitter.
4. We didn't claim any JobKeeper when many other listed companies did because the rules were so slack. An estimated $38 billion of the $88 billion went to companies which didn't qualify under the terms of the scheme. Why didn't we get onto the JobKeeper rort? Was there a serious board discussion about whether we should or would participate in JobKeeper?
Answer: we didn't claim because we didn't qualify.
5. What is the CSR policy position on making political donations and did we make any related to the recent Federal election? What regulatory risks do we face from the change of government in Canberra? For instance, will Labor's climate policies, under pressure from the 12 Greens senators, potentially make life more difficult at Tomago? Could this potentially be influencing the recent share price weakness?
Answer: we make no political donations and the share price weakness has not been driven by the change of government.
6. What is your best estimate on how many more millions we are going to pay out for asbestos liabilities? Do we know how many different people received payments in the latest year and in what year do we expect the last payout to be made? How much time does the board spend on asbestos matters?
Answer: we have paid out $156 million over the past 10 years and will continue to honor our obligations but don't know when it will end. Watch video of this important discussion.
7. Some companies like News Corp and Harvey Norman have announced buybacks and then not executed them. How certain are you that the full $100m will be spent and why didn't we look at an off-market buyback like Ampol, Woolworths and Westpac. With no net debt, why have we been so historically conservative with our balance sheet?
Answer: we are being prudent after the company got into financial strife a decade ago and buy on-market wisely.
8. It is good having former Stockland CEO Matthew Quinn on this board given our property division. Does he own more shares in CSR than he still retains in Stockland?
Answer: Yes, owns 400k worth of CSR shares and has a smaller investment in Stockland, which he left 10 years ago.
9. The proxy advisers have supported all resolutions today but were responsible for rolling our constitutional amendment last year. What did the chair think of Josh Frydenberg's proxy reforms this year. Are they too powerful and not transparent enough? Is more reform needed?
Answer: the constitutional reform was defeated last year over one issue and chair had no further comments to make on proxy reforms.
10. The chair was reportedly a candidate to be chair of Cricket Australia. If he had secured the role, would that have meant CSR would have been looking for a new chair given Mr Gillam's other commitments?
Answer: not asked.
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