Proxy Campaigns Team Update

The MUFG Corporate Markets IR Campaigns team had a busy 2024, working on numerous high profile Annual General Meetings (AGM), including Super Retail group. This challenging campaign, which faced legal and reputational crises, coupled with a strong activist campaign led by Proxy Advisors, highlighted the significant impact our Investor Relations Campaign team had in achieving positive final outcomes.

In the lead up to the AGM, the Australian Securities and Investments Commission (ASIC) was in the early stages of an investigation into several aspects of Super Retail’s battle with two former employees, who launched Federal Court action against the company after making whistleblower complaints.

Dean Paasch, Director and Co-founder of shareholder advisory group Ownership Matters, outspokenly demanded accountability at Super Retail Group over the allegations. Paatsch demanded access to blocked court documents, saying, “It’s interesting because it involved allegations about the credibility of the company’s whistle-blower regime and those things may not be material to share price, but they’re material to the way in which the company conducts itself generally in risk management.” Ownership Matters and ACSI recommended shareholders vote against Resolution 4 regarding the approval of performance rights to the Group MD and CEO.

The MUFG Corporate Markets IR Campaigns team devised a progressive shareholder communication strategy that targeted key shareholders, acknowledging investor sentiments, while emphasising the need to preserve board security to maintain the upward trajectory of shareholder value. The focus for shareholders was shifted from whistleblower activity to the importance in maintaining key senior figures, with the Managing Director (who has delivered for shareholders with total shareholder return last year of 31.6%) being properly incentivised and retained. The team made a collaborative effort to mobilise voting from the vast majority of the global institutional investor base to counter the negative investor sentiment, capturing significant support through targeted response letters.

The Campaign team’s efforts were crucial in providing a positive outcome for Super Retail Group, who received a favourable outcome (82.61% voting approval) on Resolution 4 and with all resolutions passing, with many institutional investors revising their negative votes. Dr Sally Pitkin, the Board Chair for Super Retail, said:

The success in navigating shareholder approval and overcoming disillusioned stakeholders highlights the importance of adaptability and resolve in achieving positive results.

“My sincere thanks and appreciation to you and the MUFG Corporate Markets IR team for all of your splendid work in the lead up to our Annual General Meeting. The success of our AGM will be, in no small part, due to your efforts.”