AGL Energy Limited (AGL) has today announced that its Managing Director & CEO, Brett Redman, has resigned after almost 15 years with the company, including the past two-and-a-half years as CEO. Mr Redman has advised the Board that he believed he could not make a long-term commitment beyond the proposed structural separation announced on 30 March 2021. As a result, the Board agreed it was appropriate to put in place alternative leadership arrangements now to facilitate the proposed structural separation. Mr Redman’s resignation as a Director is effective immediately but he will remain available to AGL until the expiry of his notice period on 21 October 2021.
AGL’s current Chairman, Graeme Hunt, has been appointed Interim Managing Director & CEO effective immediately and will step down as Chairman. Mr Hunt will lead AGL throughout the process of planning for the structural separation, which is continuing, and includes consideration of the appropriate long-term leadership of the two proposed new businesses. Non-Executive Director Peter Botten has been appointed as Chairman, also effective immediately.
Mr Hunt said: “I wish to thank Brett on behalf of the Board and all of AGL’s people for his service to the company. Over his time as CEO, Brett has returned the company to growth in its customer base and stabilised relationships with key stakeholders at a time of unprecedented uncertainty in energy policy and market conditions. In addition, the structural separation strategy Brett has sponsored gives AGL the opportunity to make material progress in our role in the energy transition. I look forward to working with the rest of the leadership team to deliver a successful outcome for AGL’s shareholders and all stakeholders as we drive this process to its completion.”
Mr Redman said: “After almost 15 years with AGL, I am proud of the contribution I have made to growing Australia’s largest multi-product energy retailer, assembling Australia’s largest electricity generator and founding Australia’s largest renewable investment fund. I am also pleased to have established the case for the structural separation of the business. The timing of my departure will enable the leadership team to be established to execute upon the separation strategy and lead the business into its next chapter.”
Mr Botten said: “I am honoured to be appointed Chairman of AGL. I want to add my thanks to Brett for his service to the company and to recognise Graeme for agreeing to take up the role of Interim CEO while we work through this important period. This will provide important continuity of leadership for the business and certainty for our people and shareholders while we work through the considerations of structural separation and establish a platform for future success.”
At the end date of his notice period, Mr Redman will receive benefits in accordance with the terms of his service agreement and AGL’s relevant incentive plans, under which he will be treated as a “good leaver” as defined in AGL’s executive remuneration framework.
The key terms of Mr Hunt’s employment arrangements are summarised in the Attachment.