Australian superannuation giant HESTA has placed Mineral Resources Limited (MinRes) on its watchlist due to concerns in regards to recent governance failures.
MinRes is currently being investigated by the Australian Securities and Investments Commission (ASIC) over the more than $8 million in bonuses paid to disgraced managing director Chris Ellison.
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MinRes has become the third ASX-listed company to be put on Hesta’s watchlist, alongside Woodside Energy and Santos.
HESTA CEO Debby Blakey said, “HESTA has been engaging directly with MinRes regarding its recent governance failures and we remain disappointed with the company’s response to date.
“Our concerns include that the managing director’s succession timeframe does not reflect the seriousness of the issues and that the issues identified indicate a systemic failure of governance at the senior management and Board level.
“As a result, HESTA has placed MinRes on our watchlist, and subject to our engagement escalation framework.
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“Watchlist companies are the focus of closer direct engagement and monitoring. Our engagement escalation framework also considers voting against director elections, supporting or filing of shareholder resolutions, and/or consideration of divestment where HESTA considers there is inadequate evidence of progress to address risks and it is in members’ best financial interests.
“We believe the MinRes Board has a critical opportunity ahead of the company’s upcoming Annual General Meeting to provide investors with confidence they are taking appropriate action to address these governance failures.”
