AGL share price dips following changing of the guard

AGL's shares are falling on Monday. Here's why…

| More on:
Businessman walking down staircase with suitcase, at sunrise

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AGL Energy Limited (ASX: AGL) share price has started the week poorly.

In afternoon trade, the energy company's shares are down 2.5% to $6.94.

Why is the AGL share price falling?

While the AGL share price was already in the red today, it has edged even lower since the release of an announcement during late morning trade.

According to the release, AGL is making key changes to the renewal of its board and management as it prepares to announce the outcomes of its review of strategic direction and confirm guidance later this month.

One of those changes sees AGL's chair, Peter Botten AC, step down from the role with immediate effect today. He is being replaced by current board member Patricia McKenzie.

McKenzie is currently the chair of NSW Ports and the Sydney Desalination Plant group companies. She was also previously the chair of Essential Energy, a director of APA Group (ASX: APA), AEMO, Macquarie Generation, and Transgrid, CEO of the Gas Market Company, and a key participant in the Council of Australian Government's National Energy Reform.

In addition, current non-executive director Diane Smith-Gander AO is stepping down with immediate effect.

Commenting on the exits, Patricia McKenzie said:

I would like to acknowledge and thank Peter Botten for his significant contribution as a member of the AGL Board over the past six years, including as Chairman over a challenging 18 months. I would also like to acknowledge and thank Diane Smith-Gander for her outstanding contribution to the Board over the past six years, including as Chair of the People & Performance Committee.

The company has been through a period of significant change and uncertainty, and I am stepping into the Chair role to provide clear direction and stable experienced leadership as we redesign our energy portfolio and deliver the outcomes of the review of strategic direction.

What else?

Another major change will see AGL's CEO, Graeme Hunt, step down from the role at the end of the month.

He will be replaced on an interim basis by current CFO Damien Nicks. Finance and energy executive Gary Brown will act as interim CFO during until a permanent CEO is appointed. AGL advised that there is currently a short list of Australian and global candidates.

McKenzie also commented on Hunt's exit. She said:

Graeme will leave the company at the end of the month having led with deep commitment and professionalism through an extraordinary time of change.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Does Macquarie rate Woodside Energy shares a buy, hold or sell?

Let's see what the broker is saying about the energy giant.

Read more »

Coal miner standing in a coal mine.
Energy Shares

Up 62% since April, what's happening with Whitehaven shares today?

Whitehaven shares have enjoyed a strong rally since April despite weak coal prices.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Energy Shares

Why Macquarie sees Paladin Energy shares as a buy in the dip opportunity

This uranium stock could be a buy according to the broker.

Read more »

Happy man working on his laptop.
Energy Shares

Opportunity knocks: 2 ASX stocks ready to surge

Analysts expect big things from these shares.

Read more »

Two businesspeople walk in opposite directions on a staircase with arrows under their arms, one pointing up and one pointing down.
Energy Shares

3 largest ASX uranium shares move in different directions amid fresh developments

Here's what is happening with Paladin Energy, Deep Yellow, and Boss Energy shares on Thursday.

Read more »

Bored man sitting at his desk with his laptop.
Energy Shares

Guess which ASX 200 share is sinking 6% on shock CEO exit

Investors are reacting negatively to this surprise news.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Energy Shares

Should you buy Paladin Energy shares after the selloff?

Let's see what Bell Potter is saying about the uranium stock.

Read more »

A smiling woman puts fuel into her car at a petrol pump.
Energy Shares

Guess which ASX 200 energy stock is leaping higher on earnings growth

Investors are sending the ASX 200 energy stock sharply higher on Wednesday.

Read more »