The chief executive of NAB, Cameron Clyne, attempted to make a virtue out of repeating stale lines and tired cliches at the bank's annual meeting in Adelaide yesterday.
"I haven't said anything new today and that's a good thing," Clyne told shareholders in his address.
"It is important you continue to hear the same clear message because we are committed to staying the course with our strategic agenda, which has driven this year's good result and given us a solid base for 2012."
There are hopes that Clyne will remain on autopilot for next year's annual meeting. The chairman of NAB, Michael Chaney, also said nothing new when he commented on the "contention that banks make super profits and have no right to increase interest rates".
"It is very disappointing that all parties in the Federal Parliament see it as being in their interest to use banks as a political football," the West Coast Eagles fan said.
At the 2010 annual meeting, Chaney whinged: "Such criticism is unjustified and unfair."
LOT ON HER PLATE
The former Macquarie investment banker Melannie Pyzik has still got it. At a dinner party with a bunch of her former colleagues this week, Pyzik was challenged to relive her glory days. One of the guests produced a 900 gram Christmas pudding, putting the former champion of the Macquarie Bank staff Christmas cake-eating competition on the spot.
The petite Pyzik had beaten men twice her size to set the record for eating a Christmas cake at the competition, which has become one of the biggest cultural events on the Macquarie calendar. But that was several years ago.
At this week's dinner party, Pyzik ended up sitting down to about 500 grams of Christmas cake, according to insiders. She devoured the cake in 1 minute and 30 seconds with no cutlery.
This was a better split time than her Macquarie record. Legend has it that Pyzik was hand-picked by Macquarie chief executive Nick Moore into her old role after he observed the speed at which she wolfed down a very large breakfast at her desk outside his office.
Pyzik (who obviously has a fast metabolism) is now the chief executive of the newly formed Skin Cancer Network, a charity which aims to reduce the high incidence of skin cancer in Australia.
The charity has already secured $3 million in funding from the foundation set up by the Billabong founder Gordon Merchant. The network's ambassadors include Nick Moore, the former QBE chairman John Cloney and Ramsay Health Care director Pat Grier.
OUT OF COURT
The founder and former chief executive of the imploded Gold Coast financial concern City Pacific, Phil Sullivan, has dropped his legal challenge against the financial regulator.
Sullivan launched action in the Federal Court in October against the Australian Securities and Investments Commission, which was seeking to examine him under Section 19 of the ASIC Act.
Sullivan's legal team upped the ante last month, when it accused ASIC of "abuse of process", suggesting it had possibly colluded with the investment manager that replaced City Pacific as the responsible entity of its flagship mortgage fund in 2009, Trilogy Funds Management.
Justice Peter Jacobson did not appear too impressed. "That's a bald allegation. How can you justify that? It's an extraordinary allegation." Sullivan dropped the action on Tuesday.
LOW ENERGY
It is probably one John Kinghorn-related party offer that is no longer looking so low-ball.
Aside from the former RHG Limited chairman's planned buy-back of the mortgage lender being sunk by shareholders this year, there was another deal that was scuttled early this year.
That was the proposed $486 million mostly scrip acquisition by White Energy (of which Kinghorn is a director) of Cascade Coal (of which Kinghorn is a director and 14 per cent shareholder).
The Cascade deal, which was scuttled in April before going to a shareholder vote, would have seen Kinghorn and his fellow White Energy directors Travers Duncan, Brian Flannery, John McGuigan and John Atkinson (who also had sizeable stakes in Cascade) take a 35 per cent stake in the merged group.
White Energy yesterday was probably reminded of the deal yesterday when it was queried by the ASX over the sudden unexplained slump in its share price to 35?.
Its shares have fallen more than 85 per cent since the Cascade deal was abandoned. The planned takeover wanted to issue White Energy shares to Cascade at $3.85 each.
FAINT PRAISE
The tough questions were coming thick and fast at the Orica annual meeting in Melbourne yesterday.
Aside from receiving several probing questions on the company's response to the series of incidents at its Kooragang Island plant in Newcastle, the Orica chairman Peter Duncan had to deal with one dogged shareholder who admitted he had some "gripes".
"I noticed most of the directors were too tired to stand up when you were introduced, except Nora [Scheinkestel]," said the shareholder to Duncan. "I hope they are not too tired when the directors' meetings take place."
To which Duncan responded: "That's because of all the hard work they've been doing on your behalf."
Later in the meeting, the same shareholder asked: "That horrible substitute for music that you exposed us to, was that the
worst thing you could find before the meeting?"
After complaining that
the Orica annual report did not spell out where its various directors lived (nor their ages) and asking if the company had sold any products to an "infamous" arms and explosives dealer who died two months ago, the shareholder said: "Apart from that, I think you are doing a terrific job."
Got a tip? srochfort@smh.com.au
This is the final CBD column for 2011.
Frequently Asked Questions about this Article…
What were the main takeaways from NAB's annual general meeting in Adelaide?
At NAB's AGM CEO Cameron Clyne told shareholders he had “nothing new” to say and stressed the bank is committed to “staying the course” with its strategic agenda that drove this year’s result and provides a solid base for 2012. Chairman Michael Chaney also addressed public criticism of banks, defending the industry against claims of “super profits.”
How did NAB’s chairman respond to criticism that banks make ‘super profits’ and shouldn’t raise interest rates?
Michael Chaney described the political criticism of banks as disappointing and said it’s being used as a “political football.” He and the board pushed back against the contention that banks have no right to increase interest rates, calling such criticism unjustified and unfair.
Who is Melannie Pyzik and what is the Skin Cancer Network?
Melannie Pyzik, a former Macquarie investment banker, is the chief executive of the newly formed Skin Cancer Network, a charity focused on reducing Australia’s high incidence of skin cancer. The network has already secured $3 million in funding from the foundation set up by Billabong founder Gordon Merchant and lists ambassadors including Nick Moore, John Cloney and Pat Grier.
What happened with Phil Sullivan’s legal action against the financial regulator ASIC?
Phil Sullivan, founder and former CEO of City Pacific, launched a Federal Court challenge against ASIC earlier in the year accusing the regulator of abuse of process. During the proceedings Justice Peter Jacobson criticised the allegation and Sullivan subsequently dropped the action.
Why did White Energy’s share price slump more than 85%?
White Energy’s shares plunged after the proposed $486 million mostly-scrip takeover of Cascade Coal was scuttled in April. The planned deal would have issued White Energy shares to Cascade at $3.85 each; once the acquisition was abandoned investor sentiment and the company’s share price fell sharply — down over 85% since the deal was dropped.
What investor concerns were raised at Orica’s annual meeting and why do they matter?
Shareholders at Orica’s AGM pressed management over the company’s response to a series of incidents at its Kooragang Island plant in Newcastle and raised governance and disclosure questions — including director attendance, what was presented before the meeting, and whether the company had sold products to an infamous arms dealer. These questions matter because they highlight operational, safety and governance risks investors should watch.
How can proposed takeovers and scrip deals affect everyday investors?
The White Energy–Cascade Coal example in the article shows that proposed takeovers, especially those done mostly in scrip (shares), can create significant volatility. If a deal is announced, share valuations can shift based on the proposed swap ratio; if a deal fails or is abandoned, investors can see sharp share-price falls. Everyday investors should monitor deal terms and the risk that a proposed transaction may not proceed.
What should everyday investors learn from the AGM examples in the article?
AGMs can reveal a lot: management tone (like NAB’s ‘stay the course’ message), reputational and operational issues (Orica’s plant incidents), regulatory and legal risks (City Pacific/Phil Sullivan vs ASIC), and deal-related volatility (White Energy/Cascade). Investors should use AGM disclosures and shareholder questions to assess governance, risk management and the clarity of a company’s communication.
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