6 questions asked at 2023 Resimac AGM

November 14, 2023

Here is the text of the 6 written questions submitted at the 2023 Resimac hybrid AGM held on November 14. Five of them were dealt with and the only other question came from a former chairman about the sustainability of dividend payments.

Q1. Could chair Warren McLeland please summarise his full history with our controlling shareholder Duncan Saville and also whether he intends to serve a full 3 year term.

Answer: Duncan was a client of JP Morgan when Warren worked there and he was CEO and later executive chairman of Resimac. The relationship goes back 20 years and he intends to serve a full term, health permitting. Watch video of exchange via Twitter.

Q2. Most public company AGMs include a resolution to offer a long term incentive grant to the CEO. Could the chair and CEO Scott McWilliam please comment on why this hasn't happened at Resimac. Is it because no new incentives are being granted or because Scott isn't a director. Why doesn't he have a seat on the board like most CEOs?

Answer: An LTI scheme is being worked up and will probably be presented to the 2024 AGM. Watch video of exchange via Twitter.

Q3. The annual report states on page 131 that Duncan Saville controls 62.48% of our ordinary shares. Could Duncan clarify if he personally owns the 254.47 million shares or whether there are third party investors in funds that he controls. Also, could Duncan clarify how he exercises his control over the business whilst living in Bermuda. How often does he attend board meetings in person in Australia?

Answer: Duncan explained the controlling stake is held within a fund that has a board and third party investors and, yes, he does attend board meetings when in Australia. Watch video of exchange via Twitter.

Q4. Resimac relies on banking partners to conduct its business but our chairman Warren McLeland today said that Australia has an increasingly powerful "banking oligopoly". Is that sort of language going to impress our banking partners and on what grounds does Warren believe Australia has a banking oligopoly as opposed to a supermarket oligopoly, a beer oligopoly or newspaper oligopoly?

Answer: the chair gave a lengthy defence of his language, going into economic theory and market power. Watch video of exchange via Twitter.

Q5. Could the CEO comment on how important mortgage brokers are to our business. The big banks are now relying on brokers for as much as 70% of their new home loans. Is this healthy or does it lead to a commoditised market? Also, what impact has REA's purchase of Mortgage Choice had on the mortgage broking industry. Did we look at bidding for Mortgage Choice?

Answer: Brokers are pivotal for Resimac, as it has around 9,000 of Australia's 16,000 mortgage brokers on its books. Watch video of exchange via Twitter.

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. Also, why isn't there a record of past AGMs on your website?

Answer: Question not asked.