Paladin chief calls for investor calm
Mr Crabb and his managing director, John Borshoff, have been under extra pressure in recent times on the back of shareholder anger at the company's direction.
An Asian hedge fund has been leading a group of Paladin shareholders that are trying to remove Mr Crabb and Mr Borshoff, and their rebel cause has been helped by proxy adviser ISS, which last week called for shareholders to reject a dilutive share placement that Paladin made in August.
The pressure is likely to continue before this month's annual meeting, with the Australian Shareholders Association set to agree with ISS, plus name Mr Crabb at the top of its list of ASX chairmen who should stand down.
Mr Crabb will join Fairfax Media chairman Roger Corbett, Tatts boss Harry Boon, Aurizon chairman John Prescott, Leighton's Bob Humphris and White Energy chairman Travers Duncan on the ASA's hit list.
Mr Crabb and Mr Borshoff have both been on the board of Paladin for close to 20 years, and Mr Crabb said the company had been discussing a succession plan.
"We do openly discuss succession planning and we do have a conceptual plan for that, but we are in a period of change and there will be a further uplift in the uranium market," he said.
Paladin failed to sell a stake in its Langer Heinrich mine in the September quarter, and Mr Crabb said sale negotiations were still under way, making it a bad time to overhaul the board.
"I'm intimately involved in the strategic execution of that, which a number of shareholders have told me they expect me to be involved in, so I do think it would be counterproductive at this important time," he said.
"Shareholders considering that need to bear in mind what the company has achieved over the last number of years.
"Under my chairmanship we have built two new uranium mines in Africa, no other company in the world has built any uranium mines in the last 10 years."
Mr Crabb said the company had four other diverse directors, who were not "shrinking violets" in the boardroom.
The ASA disagreed, with chairman Ian Curry saying that Paladin had not once delivered a dividend to shareholders since it started trading in 1994, yet had imposed billions of dollars worth of losses.
"He should retire from the board and ASA will be voting undirected proxies against his re-election," he said.
Frequently Asked Questions about this Article…
Paladin Energy's chairman, Rick Crabb, is urging investors to remain calm because the company is undergoing significant changes, including succession planning and asset sell-downs. He believes that making board changes during this period could be counterproductive.
Paladin Energy's chairman, Rick Crabb, is urging investors to remain calm because the company is undergoing significant changes, including succession planning and asset sell-downs. He believes that making board changes during this critical time could be counterproductive.
Paladin Energy's board, led by Rick Crabb and managing director John Borshoff, is under pressure from shareholders who are unhappy with the company's direction. An Asian hedge fund and proxy adviser ISS are pushing for changes, but Crabb argues that now is not the right time for a board overhaul.
Paladin Energy's board, led by Rick Crabb and managing director John Borshoff, is under pressure from shareholders who are unhappy with the company's direction. An Asian hedge fund and proxy adviser ISS are pushing for changes, but Crabb argues that now is not the right time for an overhaul.
Shareholders are concerned about the company's direction and have been pushing for changes in leadership. They are particularly unhappy with a recent dilutive share placement and the lack of dividends since the company started trading in 1994.
Shareholders are concerned about the company's direction and have been pushing for changes in leadership. They are particularly upset about a dilutive share placement and the lack of dividends since the company started trading in 1994.
Rick Crabb highlights that under his chairmanship, Paladin Energy has built two new uranium mines in Africa, which is a significant achievement as no other company has built uranium mines in the last 10 years.
Under Rick Crabb's leadership, Paladin Energy has built two new uranium mines in Africa, which is a significant achievement as no other company has built uranium mines in the last 10 years.
Paladin Energy failed to sell a stake in its Langer Heinrich mine in the September quarter, but negotiations are still ongoing. Rick Crabb believes that making board changes during these negotiations would be counterproductive.
Paladin Energy failed to sell a stake in its Langer Heinrich mine in the September quarter, but negotiations are still ongoing. Rick Crabb believes that this is not the right time to make board changes due to the ongoing strategic execution.
The Australian Shareholders Association (ASA) is critical of Paladin Energy's leadership, particularly Rick Crabb. They have not seen dividends since the company started trading and have experienced significant losses, leading them to vote against Crabb's re-election.
The Australian Shareholders Association (ASA) is critical of Paladin Energy's leadership, particularly Rick Crabb. They have included him on their list of ASX chairmen who should stand down and plan to vote against his re-election.
Proxy adviser ISS has played a significant role by supporting the shareholder group led by an Asian hedge fund in their efforts to remove Rick Crabb and John Borshoff. ISS has also advised shareholders to reject a recent dilutive share placement.
Proxy adviser ISS has supported the shareholder rebellion by advising against a dilutive share placement made by Paladin Energy in August. Their stance has added pressure on the company's leadership.
Rick Crabb mentions that Paladin Energy's board includes four other diverse directors who are actively involved in the boardroom and are not 'shrinking violets.' He believes this diversity is beneficial for the company.
No, Paladin Energy has not delivered any dividends to its shareholders since it started trading in 1994, which is a point of contention among investors and the Australian Shareholders Association.
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