Transurban Group (TCL) 2015 AGM Report

Company/ASX Code : Transurban Group (TCL)
Venue :
11am Melbourne Exhibition Centre
2 Clarendon Street, South Wharf
Melbourne, Victoria
Monitor : Mr John Curry
AGM Details / NoM : Monday 12th October, 2015
# of Attendees : 200 security holders plus 100 visitors
# Holdings represented by ASA : 390
Value of Proxies : $23.8 million
# Shares Represented by ASA : 2.4 million
Market Capitalisation : $18.8 billion

Transurban keeps profits and traffic moving

Transurban had a good year lifting distributions from 35 cents per security to 40 cents per security. Forecast distribution for 2016 is 44.5 cents per security.

Strong traffic flow lifted revenue and the total result was significantly influenced by the acquisition of Queensland Motorways from July 2014. Transurban now has over 3 million account holders- more than many retailers.

The ASA noted that fees paid to the auditor for non-audit services were higher than last year and this can give a perception that auditor independence may be compromised. The Chairman said the non-audit fees related to economic studies outlining the gain to the community of better roads and transport facilities.

Christine O’Reilly was re-elected a Director with 99.8 % votes cast in her favour.

Rodney Slater was re-elected a Director with 93.9% votes cast in his favour. A proxy adviser had recommended to their client that Mr Slater was not independent because he is a member of a US law firm which received fees from Transurban. The ASA believes Mr Slater is an excellent director with wide networks in the United States. The ASA highlighted its policy of requiring non-executive directors to hold shares having a value equal to one year’s fees and pointed out that Mr Slater had only recently made his first purchase of 3,000 securities. He said he will be lifting his holding.

Transurban has performed well in 2015 and executives and security holders have shared in the increase in value. The company’s incentive plans do not meet all ASA guidelines, but security holders are comfortable with the results. The ASA voted in favour of adoption of the remuneration report and the grant of performance awards to the CEO.

The remuneration report was approved by 99.5% of security holders. The ASA pointed out that the LTI was for 3 years only. ASA policy is four years and preferably five years for LTI plans. In addition the vesting formula for the LTI commences at 50% when the 50th percentile of the peer group is reached compared with the ASA guideline of 30%.

The resolution to grant performance awards to the CEO received approval from 94% of security holders.