Questions asked at 2023 Telix Pharmaceuticals AGM
May 27, 2023
Here is the text of the written questions submitted online during the 95 minute 2023 Telix Pharmaceuticals hybrid AGM held on May 24, along with a summary of the answers and some video grabs.
1. After a long association with Macquarie Group, including a few years as chair, Kevin McCann retired from the board and then joined the advisory board of a competitor, Evans & Partners. Will Kevin undertake not to assist any of our competitors once he retires as chairman?
Answer: Lodged first but not asked until the very end of the meeting. Watch video of chair saying the move was signed off by Macquarie's CEO at the time because they didn't regard Evans and Partners pre-listing as as competitor and he would never join a Telix competitor. CEO joked (watch video) that he would like to unleash Kevin on his competitors given the hard time he gives the Telix management team.
2. The pundits are saying that artificial intelligence is going to cause major disruption in the medical space. What has happened so far with cancer imaging and is this a threat or an opportunity for our business.
Answer: CEO said they were on the issue and AI has long been a feature of the industry. Watch video of exchange via Twitter.
3. Did any of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions? Which of the proxy advisers are covering us and have there been any material proxy protest votes? Will you disclose the proxy votes before the debate on each resolution so shareholders can ask questions about the reasons if there have been any protest votes? Also, why not disclose the proxies to the ASX with the formal addresses like others now do?
Answer: shouldn't have been held back until the end but proxies showed no protests. Chair didn't understand the disclosure element with the formals, partly because the question was edited down. Just read them out in full.
4. Is the chairman intending to serve a full 3 year term and is this likely to be his final term as chairman of our company. Is he actively managing succession planning so that there are multiple viable internal successors when the time does come to hand over. Also, how did Sydney-based Kevin become chairman of our Melbourne-based company in the first place?
Answer: Again, question was edited down and Kevin simply said he'd just been re-elected so it wasn't appropriate to talk about retirement. Watch video via Twitter.
5. The CEO owns 22.67 million shares worth $266 million based on the current price. Well done. Does he really need any more incentive through this share grant? Could the CEO also please detail the background of his shareholding in the company, including whether he has sold any shares and how much of his current shareholding has come through incentive schemes.
Answer: not asked. Watch video of co sec being shut down by chair when started reading it out.
6. The medical-commercial-university-research precinct in Carlton is trumpeted as one of the best in the world. Melbourne should be very proud of Telix. Which institutions, facilities and people within this precinct were most important in assisting delivering what we see with Telix today?
Answer: CEO said there was a lot of great talent in the precinct but then didn't give any examples. Watch video of exchange via Twitter.
7. Given the interesting discussions across a range of topics today, including this remuneration report, could the chair undertake to make an archived copy of the webcast plus a full transcript of proceedings available on the company's website? The likes of Nine, AGL, ASX, ANZ, Domino's and Lend Lease all produced their 1st AGM transcripts in 2021. Will you follow suit today? This is something IAG has been doing since 2003.
Answer: Again, question wasn't read in full. Co sec said they would publish an archive of the webcast and chair rejected transcript request. Watch video via Twitter.
8. Page 154 of the annual report lists 3 custodians - HSBC, JP Morgan and Citicorp - as the 3 largest shareholders in our company with a combined 30%. You should know these entities are not actual shareholders but custodians for many shareholders. Who are our actual largest shareholders apart from the CEO and will you undertake to only publish beneficial owners above 5% in next year's substantial shareholders section of the annual report?
Answer: Chair scoffed about always disclosing shareholders above 5% but didn't undertake to fix the inclusion of custody firms as substantial holders in the annual report. It's not hard.
9. Our auditor, PwC, has been in the news for all the wrong reasons recently. How long is their current contract to audit Telix and has the board considered a change of auditor or bringing forward the next proposed tender process in light of the revelations about leaks of confidential Federal Government tax information to global clients to reduce tax. What is the history of Telix's relationship with PwC?
Answer: the chair intervened to read this out one out. CEO later interjected that this wasn't PwC's AGM. Audit chair Jann Skinner said issue has not been addressed without disclosing she spent 17 years as a PwC partner. Watch video of exchange via Twitter.
10. Mark Nelson is a member of the audit committee which is chaired by a former long-serving PwC partner, Jann Skinner. In terms of weighing up whether to replace PwC in light of the Federal Government tax scandals, will our audit committee chair be involved in the decision given that she served as a PwC partner for 17 years, albeit retiring way back in 2004. In other words, are we treating Jann's PwC history as a conflict of interest on this PwC removal question?
Answer: question wasn't asked during the resolution dealing with Mark Nelson's election or at any time.
11. Thank you for offering a hybrid AGM. Will you agree to do this again next year? Also, at next year's AGM, could we please take questions on each resolution as they are dealt with, rather than dealing with general questions at the start and then all resolution questions as a single job lot at the end. It's a simple case of following the agenda, just like you do at board meetings.
Answer: Again, question wasn't read in full. Co Sec said this was third straight hybrid but that was a matter for the board going forward. Chair took a straw poll at the meeting re following the agenda and one punter supported following the agenda.
12. The shareholders voted overwhelmingly in favour of both remuneration items today so well done to the board and founders for coming up with a structure that both proxy advisers and institutional shareholders are comfortable with. This doesn't always happen with a change of rem structure so well done in successfully navigating through to a 98% mandate on both rem items.
Answer: not asked, although it was a more a comment than a question.
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