Wal King was in fine form at his last Leighton AGM. Straying from his scripted address, King took delight in a few parting barbs.
As a film showing pictures from his early years at Leighton working on projects in the bush played on a screen behind board members, he quipped: “Can you believe how good I looked when I was 25? I probably haven’t changed but a lot of people around here have."
And when King came to thanking the many people he had worked with at Leighton, he made sure to add: “Obviously I don’t mention the people who haven’t supported me."
Leighton’s board had originally intended to announce King’s departure at the AGM but was forced to bring it forward following sustained speculation of a rift between the company and its biggest shareholder, Hochtief, over the manner and timing of his succession.
The departing CEO also managed to dodge questions about his pay package, which is mostly in cash, from shareholder activist Stephen Mayne. When asked by Mr Mayne why he didn’t take more in Leighton stock, Mr King said: “I’m just plain dopey."
Leighton chairman David Mortimer tried to stop the AGM from turning into The Wal King Show by stressing the board was planning a more stringent pay package for incoming CEO David Stewart.
Part of Stewart’s package, which has not yet been disclosed, would be equity-based, Mortimer said. “Times have changed and we have to move with the times."
Mortimer rejected claims that an “unsettling culture of greed" had emerged at Leighton, with the company preparing to hand King $5 million for simply overseeing the transition to Stewart.
“I don’t think there’s a culture of greed, I think there’s a culture of success."
King has also signed a non-compete agreement, for which he will receive an additional $4.9 million.
But Mortimer acknowledged that the $5 million award was “unusual" and said the size of Stewart’s pay package would be “more in line with the expectations of shareholders".
King told The Australian Financial Review after the AGM he had nothing more to add as his 42-year career with Leighton drew to an end.
“You’ve heard it all."
The Australian Financial Review