Kerry Stokes' Seven Facing Shareholder Backlash
At the company’s AGM, investors delivered a clear message to billionaire Kerry Stokes: patience is running out regarding Seven’s executive pay plans and its declining market value.
A Long Media Career Nearing Its End
After five decades in the Australian media industry, much of it spent as one of the nation’s most powerful figures, Kerry Stokes, 85, is expected to step down as chairman of Seven West Media early next year—conditioned on the approval of its merger with Southern Cross Austereo.
Shareholder Discontent Over Performance
Shareholders expressed sharp dissatisfaction about several issues:
- Executive pay proposals
- The absence of dividends for years
- A share price plummeting from over $14 in 2007 to just $0.14 today
Seven’s share price is now down more than 99% from its peak in 2007, reflecting the broadcaster’s lost influence.
Market Position Declined
Nearly two decades after its peak, Seven West Media no longer holds the significant market power it once commanded, as reflected by its drastically reduced share price.
AGM Highlights
During the AGM on Thursday, Stokes faced growing shareholder frustration tied to the company's shrinking market value and strategic decisions.
"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."
Author's summary: Kerry Stokes is likely to end his long tenure as chairman of Seven West Media amid investor frustration over executive pay and a sharp drop in share price, signaling a challenging future for the company.