Shareholder Discontent at Seven West Media's AGM: Stokes Responds

On Thursday, Kerry Stokes, the influential media mogul, led his final annual general meeting as the chair of Seven West Media, pending the expected merger with Southern Cross Media, the owner of Triple M and Hit radio networks. At 85 years old, Stokes is set to retire in February, and he attempted to reassure shareholders during the AGM held in Sydney.

During the meeting, Stokes emphasized that executives from both Network Seven and The West Australian newspaper had not received bonuses this year. Despite his efforts to calm the waters, tensions were palpable. Shareholder Paul Keighery took the opportunity to voice his concerns, expressing that Seven West was “the greatest media company in Australia” but criticizing its treatment of minority shareholders, like himself and his wife, as being dismissive and “contemptuous.”

Keighery highlighted the troubling decline of Seven West's share prices, which have plummeted by 30% over the last five years, currently standing at approximately 13.5 cents. He recalled purchasing 200,000 shares when their value was $5 and implored Stokes to consider even a “minuscule” dividend for investors. “My wife and I, we love Farmer Wants a Wife, Dancing with the Stars, The Voice, all those programs, good on you,” he stated, reflecting on his loyalty to the company's productions.

In response, Stokes reassured Keighery, stating that he too has not received dividends. He acknowledged the struggles the company faces, noting that “actually, our earnings have been challenged by some very large international companies stealing all our revenue.” Despite his explanations, the shareholders remained unconvinced, leading to a significant decision during the meeting.

The shareholders voted to issue a “first strike” against the company’s executive pay plans, a move that occurs when over 25% of shareholders oppose such arrangements. This strike carries implications for the company, as it opens the door to a potential board spill next year if a second consecutive strike occurs. However, the anticipated merger could complicate this situation.

This week also marked the return of political commentator Tom Switzer to The Australian after a hiatus. Switzer had previously resigned from The Centre for Independent Studies (CIS) amidst allegations he harassed a colleague, which were filed with the Fair Work Commission. He has stated that his decision to leave was made prior to the allegations surfacing.

In August, the Sydney Morning Herald reported that Emilie Dye, a marketing and research analyst at the right-leaning think tank, filed complaints with the Fair Work Commission, alleging that Switzer had made inappropriate comments and actions towards her during a night out. Switzer has firmly denied these claims, and it is important to note that there is no indication that the allegations have been substantiated; only that they were made.

Dye also alleged that the CIS retaliated against her by investigating her conduct after she declined to sign a non-disclosure agreement concerning the complaint. Subsequently, the CIS publicly apologized to Dye as part of a settlement agreement that included a financial payout.

Following his return, Switzer’s commentary has centered on the challenges facing the Liberal Party and the historical context of overcoming setbacks. “No victory lasts forever,” he reflected, “and no downfall is permanent,” suggesting that the party could rebound from its current difficulties.

The recent AGM for Seven West Media reflects growing discontent among shareholders, particularly regarding executive compensation and the company's declining stock performance. As Kerry Stokes prepares to step down, the future of the company remains uncertain, particularly with the looming merger on the horizon. Moreover, the controversies surrounding figures like Tom Switzer also underscore the complexities within the Australian media landscape as it grapples with both internal and external challenges.