Frontier Energy has revealed Mark McGowan will not join its board, more than three months after announcing the former premier as its incoming chair.
Frontier Energy has revealed Mark McGowan will not join its board, more than three months after announcing the former premier as its incoming chair.
In a brief release to the ASX, Frontier blamed Mr McGowan’s other work commitments for the backflip, with the pair unable to agree on a start date.
“Whilst both parties have been working towards a start date, due to Mr McGowan’s other work commitments no firm start date could be agreed and owing to the prolonged duration since the announcement, it has been mutually agreed that Mr McGowan will not join the board at this time,” Frontier said.
Today’s announcement brings to a close a prolonged and baffling mystery over the former premier’s appointment by Frontier.
Mr McGowan was announced as the company’s incoming chair on August 19, prompting a share price spike, and was expected to begin on September 2.
But Frontier’s fortunes took a hit when it was not granted peaking power capacity credits to supply energy from its proposed Waroona solar project to the state's major grid by the Australian Energy Market Operator – a major blow caused by an unexpected oversupply of potential options, which cost it a $215 million debt finance facility and led to a $23 million capital raise at 25c being called off.
The decision set back the Waroona project, which Frontier had hoped to have up and running to supply energy to the grid in the 2026-27 capacity year.
In an investor call following that announcement, Frontier management revealed the former premier’s arrival time was uncertain – shrouding the chair position in a fog which has lifted with today’s announcement.
Frontier remains committed to getting Waroona off the ground but will do so without Mr McGowan as its chair.
The former premier has maintained a busy schedule since his shock departure from the top job in May last year, picking up advisory roles at BHP, Mineral Resources (MRL) and APM Human Services International and joining Joe Hockey’s advisory firm Bondi Partners.
“I consult a bunch of companies,” Mr McGowan said of his advisory positions at a business event last Friday, with Frontier was a notable omission from the list.
“BHP – you all know them – BHP, MRL, they’re great, they’re heavily involved in Western Australia.
“They like to take my advice on how to get on with government – what to say, who to talk to, seeking my advice on issues that might come along, international relations.”
A sticking point for the McGowan plan may have been compensation.
Frontier’s share price was 46 cents when Mr McGowan’s appointment was announced, spiking above 50c on the news.
Mr McGowan’s pay was to be all-scrip, with 2 million unquoted options to be issued up front – 1 million of which would have been exercisable at 20c vesting in 12 months and two further 500,000 tranches exercisable at 25c and 40c, respectively, vesting after two years.
The package looked attractive at the time, with Business News noting a sustained share price would have led Mr McGowan to qualify for all performance triggers in 2027.
But Frontier’s share price collapsed as low as 11c following the AEMO blow, making harder work of the proposed compensation.
Mr McGowan remains listed as non-executive chair (proposed) on the Frontier website.
The company said it was committed to "re-positioning the board for the next phase of development" and had kicked off a process to appoint additional independent directors with energy, financial and technical expertise.
The board currently comprises executive directors Grant Davey - who was to step aside as chair following the now-quashed appointment of Mr McGowan - and Chris Bath, with Dixie Marshall and Amanda Reid on board as non-executive directors.
Frontier shares were up 3.8 per cent on the news, to 13.5c.
