7 questions lodged at 2024 Duratec hybrid AGM

Q1. The 5 most valuable US big tech stocks - Microsoft, Apple, Amazon, Alphabet and Nvidia - are together worth more than $20 trillion, largely because they have enormous pricing power and are over-charging customers the world over. Could the CEO comment on which of the big global technology companies we are most reliant on and what would we do if they suddenly put their prices up by 30%?

Answer: The CEO said they were mainly out in the field and not that exposed to big tech, but Microsoft would be the biggest. Watch video of exchange via Twitter.

Q2. Thank you for disclosing the proxy position to the ASX along with the formal addresses at 10.57am Perth time, 3 minutes before the AGM commenced. Well done on receiving strong voting support from shareholders across the board. Which of the 5 proxy advisers in the Australian market - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - issued a report ahead of our meeting and did any of them recommend a vote against any of today's resolutions, including this remuneration report item?

Answer: The question wrangler butchered this one but after he did that two another shareholder and then got a clip from me, his reading improved with the later question but wasn't perfect. The answer was that no proxy advisers produced a report. Watch video of exchange via Twitter.

Q3. When disclosing the outcome of voting on all resolutions today, including this proposed lift in the fee cap for directors, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. It is always good to see what retail shareholders think about board pay issues. Others have already blazed the trail as this was a voluntary disclosure initiative adopted by the likes of Qantas, ASX, Suncorp, Tabcorp and our own share registry provider Computershare during the current AGM season. You and Computershare have the data, so why not let the sun shine in and disclose how many of our 2500 shareholders voted and what they collectively thought about all the resolutions?

Answer: The question wrangler read this in full, which made it very difficult to say no, so they said yes, subject to the data being available. Watch video of exchange via Twitter.

Q4. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO could factually summarise the situation in 60 seconds.

Answer: The new CEO is also a co-founder of the business who has a big holding and provided a good summary. This was his first LTI grant. Watch video of exchange via Twitter.

Q5. Having enjoyed the exemption on election during his 12 years as managing director, how has Robert enjoyed running the guantlet of a shareholder election this year. Also, could both Robert and the new CEO on how the handover is going. Many new CEOs don't enjoy having their predecessor sitting in the board room critiquing their performance and protecting their own legacy. How is it working so far?

Answer: The former and current CEO both said everything is great, which is no surprised given both were founders of the business. Watch video of exchange via Twitter.

Q6. There is no sign of any archive of the webcast of last year's AGM on the Duratec website. The annual report says that we have around 2,500 shareholders but less than 100 will be in the room or watching this AGM live online. As the one event of the year focused on retail shareholders what are we doing to ensure as many shareholders as possible have access to the full AGM debate? Will the chair undertake to publish a full archive of the AGM webcast on our website, which is what we do with the six monthly results earnings call? Even better, why not make the record of the AGM permanently public by publishing a full transcript of proceedings to the ASX announcements platform, an initiative that Kathmandu did after its 2019 AGM?

Answer: The question wrangler butchered this one but basically promised to deliver an AGM webcast archive on the Duratec website so all good.

Q7. It is better practice to name the shareholder asking the questions. That sounds like an ASA rep to me so put 'em on the record. No probs with naming me either.

Answer: this was a private message to Dennis the named question wrangler and he sent one back saying he would name everyone at the end. Listen to this audio of how he did it. What a delight to be tag teaming on a Perth virtual with ASA's Brisbane-based chair Steve Mabb, along with Bernard Kent and Mr and Mrs Ferguson.

Copyright © 2024 The Mayne Report. All rights reserved

• share
  Share
  • 
    Facebook
  • 
    Twitter
  • email
    Email
  • print
    Print
  • link
    Copy Link
  • cancel
    Cancel