TWE chairman John Mullen re-elected despite shareholder grilling
Mullen came under scrutiny from shareholders for serving on the boards of multiple other companies, but was reelected as chair of Australian group Treasury Wine Estates during the company’s annual general meeting held today.
As db reported earlier this week, Treasury Wine Estates no longer expects to achieve its previously stated target of “low to mid double-digit EBITS growth” in F26, nor its anticipated 15 % EBITS growth in F27, following slumping demand in China. The company now plans to reallocate products, including Penfolds wines, to other markets away from China, to protect pricing and brand equity after sales dipped throughout June and July.
During the company’s annual general meeting held on Thursday 16 October, shareholders re-elected TWE chairman John Mullen for another term, though two major independent bodies urged investors to vote against him. Advisory firm Institutional Shareholder Services and the Australian Shareholders Association noted that Mullen also chairs Australian airline Quantas and logistics firm Brambles, as well as serving on a number of other private boards.
“Can John [Mullen] point to any other person in recent history who has simultaneously chaired three ASX 100 companies?” one shareholder asked at the meeting, according to Reuters.
Headscratching
Responding, Mullen reassured investors that his commitment is “absolute’ and that he is devoting “adequate” time to TWE.
Partner Content
“At a time when the company is going through everything that it’s going through that they would think it’s in shareholders’ interest not to have a chair… that makes me scratch my head,” he said.
In the end, despite TWE stocks falling by 40% since the start of the year, only 14.55% of shareholders voted against reelecting Mullen.
However, shareholders took him to task over the AU$4 million handshake agreed for new incoming Treasury CEO Sam Fischer, who begins the role on 27 October. Mullen said that the sum was necessary in order to compensate Fischer for giving up incentives with former company, the beer giant Lion.
Related news
Treasury Wine Estates hit by major US write-down
Treasury Wine Estates announces earnings boost and share buyback plan
