6 questions asked at 2022 Sonic Healthcare AGM
January 8, 2023
Here is the text of 6 written questions asked at the 2022 Sonic Healthcare AGM held on November 17. View video archive of 107 minute meeting.
1. Overall, how much windfall revenue did we generate over the past 2 and a half years from the pandemic and how much of that do you estimate dropped to the bottom line in additional after tax profit?
Answer: CEO Colin Goldschmidt rejected use of the word "windfall" but did say COVID lifted revenues by around $4 billion but wasn't able to provide a profit boost number - watch video of exchange via Twitter.
2. Did any of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of the directors today, including Professor Bennett. Will you disclose the proxy votes before the debate on each resolutions so shareholders can ask questions about the reasons if there have been any protest votes? Also, why not disclose the proxies to the ASX with the formal addresses like others now do?
Answer: company secretary Paul Alexander said all proxy advisers were backing all of the directors and they would look at the early disclosure proposal for future AGMs.
3. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary Sonic Healthcare shares or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated over many years and the CEO could factually summarise the situation in 30 seconds.
Answer: Surprisingly, company secretary Paul Alexander did most of the talking giving an impressive 9 year vesting history before CEO Colin Goldschmidt grumpily admitted that most of his large $30 million shareholding in the company had come from remuneration incentive schemes - watch video via Twitter.
4. Could the CFO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated over many years and the CFO could factually summarise the situation in 30 seconds.
Answer: because the company secretary asked these questions as a double with the previous resolution, the chair said it has been dealt with but Chris Wilks wasn't invited to explain his share trading and vesting history.
5. When disclosing the outcome of voting on all resolutions today, including the remuneration report, 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 last year and Webjet and Tabcorp so far this AGM season.
Answer: chair said they'd take this on notice but then didn't do it as you can see in these results.
6. Given the interesting discussions across a range of topics today, could the chair undertake to make an archived copy of the webcast plus a full transcript of proceedings available on the company's website? The likes of Nine, AGL, ASX, ANZ, Domino's and Lend Lease all produced their 1st AGM transcripts in 2021. Will you follow suit today? This is something IAG has been doing since 2003 and only costs around $300.
Answer: chair hesitated saying they would take it notice but then was positive and said was a good suggestion if they manage it technically - watch video of exchange via Twitter.
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