Kerry Stokes' Seven Swansong Tainted by Shareholder Backlash
At the company's AGM, investors conveyed a clear message to billionaire Kerry Stokes: patience is running out regarding Seven’s executive pay plans and its declining market value. After more than five decades in the Australian media industry, largely as a key powerbroker, Stokes likely faced Seven West Media shareholders as chairman for the final time.
Shareholders expressed frustration over several issues:
- Executive pay arrangements
- The absence of dividend payments for years
- A share price that has sharply declined
Stokes, aged 85, will step down as chairman early next year—contingent on the approval of the merger with Southern Cross Austereo. Since 2007, the broadcaster's share price has fallen over 99%, dropping from its peak of more than $14 per share when Seven was a dominant market player, to just $0.14.
Nearly two decades on, Seven wields far less influence than before, a reality underscored by its diminished share price.
Shareholder Sentiment at AGM
During the AGM on Thursday, Stokes confronted growing shareholder resentment tied to the company's dwindling market value.
“Patience is wearing thin for Seven’s plans on executive pay, its failure to declare a dividend in years, and a share price circling the drain.”
This sentiment reflects a broader dissatisfaction with the company's performance and leadership as it faces significant industry challenges.
Looking Ahead
Stokes’s departure marks the end of an era for Seven West Media, with major structural changes anticipated pending the merger decision.
Author's summary: Kerry Stokes is set to resign as chairman of Seven West Media amid shareholder frustration over executive pay, no dividends, and a collapse in share price since 2007.