9 questions lodged at 2022 Regis Healthcare AGM
October 26, 2022
Here is the text of the 9 questions and comments lodged at the 2022 Regis Healthcare hybrid AGM held on October 25, 7 of which were read out.
1. As a large employer, what steps have we taken to deal with chronic staff shortages by recruiting overseas labour. What sort of reforms would we support to the visa system to make it easier to attract and retain key workers in areas where the local workforce can't satisfy demand.
Answer: We are trying but the system needs to be stream-lined. There is a big global shortage of nurses and foreign students have historically been a big contributor to carer numbers.
2. In November 2020, co-founder Bryan Dorman and Soul Pattinson proposed a $1.85 a share privatisation bid which the board rejected. Could Bryan please comment on whether he has had any subsequent engagement with Soul Pattinson and whether he remains a committed long term shareholder in Regis as a public company.
Answer: The chair and co-founder protected Bryan from answering this question but said he remains on the board, hasn't sold any shares and nothing subsequently has been announced to the ASX.
3. Well done in lodging the proxy votes with the ASX along with the formal address and well done on achieving more than 95% support on all resolutions. In keeping with transparency progress, would you be able to publish a transcript of today's AGM debate, in addition to the webcast. Also, what led to the early proxy disclosure decision which is a good move because it allows for a more informed debate at the AGM.
Answer: we'll look into the transcript.
4. When disclosing the outcome of voting on all resolutions today, including this proportional takeovers item, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative adopted by the likes of Metcash, Altium and Dexus after their 2021 AGMs.
Answer: we'll look into this.
5. Well done to Linda for sticking with the company through COVID. It can't be easy joining a company with two founders on the board, particularly when they jointly control the company but had a different views on the Soul Pattinson takeover. Regis remains the best regarded ASX listed aged care provider but Linda's critics say she made too many senior staff changes when first appointed. Does she have any regrets with how she went about the early restructuring?
Answer: chair defended the CEO saying she lost some senior executives before she arrived, still has some long serving people in the executive team and seriously cranked up the focus on clinical care, lifting the overall quality of the management team.
6. What was the process through which we recruited Sally to the board. Was a recruitment firm involved and did the full board interview multiple candidates. Could Sally clarify if she knew any of the Regis directors before engaging with the recruitment process?
Answer: Head hunter was involved, multiple candidates were interviewed and Sally had not previously met any of the directors. Excellent.
7. Did both founders vote in favour of these resolutions and what drove the 9% protest vote on the previous item. Did one of the proxy advisers recommend against and what was the reason?
Answer: the founders couldn't vote on the rem report but did vote in favour of the LTI grant.
8. Given the founders can't vote on the rem report, surely you know that there won't be a spill based on the proxy position.
Answer: wasn't read out
9. Final comment. Well done on running a hybrid AGM, dealing openly with all questions lodged and for your general approach to governance and operations. You are regarded as the best performing listed residential care provider and I've been impressed with how you've battled through COVID and various regulatory headwinds. Too often critics focus only on the share price and don't recognise challenges outside of the control of the board and management. The board seems balanced, skilled and well invested so please keep battling on.
Answer: wasn't read out
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