David Teoh Not Independent Says TPG
TPG Telecom Limited has called Mr Teoh “not independent” in a Corporate Governance Statement to the ASX alongside the company’s annual report to shareholders.
In a breakdown of the Board Composition for TPG Telecom Limited released Friday, the company calls David Teoh, “not independent as he is a substantial shareholder of the Company”.
Despite this, however, the board views his “depth and understanding” of the telecommunications industry as an exceeding benefit in comparison to requiring unbias independence as TPG Chairman.
Though to somewhat contradict themselves just one paragraph later, the statement ends with, “in this dual role, [David Teoh] does bring the quality and independent judgement to all relevant issues that are required of the Chairman.”
While this is nothing to be alarmed about, considering the ACCC’s fervour of attributing absolute control of TPG to Mr Teoh inside Federal Court during the appeal of the company’s merger with Vodafone.
Even Justice Middleton suggested that when talking about TPG during the case, ‘we’re really talking about Mr Teoh’.
TPG is currently gearing up its search for growth as 2020 sees the company continue ‘ongoing efficiencies’ such as the integration of iiNet operations and increased automation, following a decrease in consumer segment employment costs by $11.6m, from 7.7% to 7.1%.
Curiously enough, David Teoh was also included in the reduction of employment costs, with the Chairman’s salary dropping to $3.09m, a decrease of $316,000.
Considering the company’s net profit decline of 56% to $173.8m and flatlining revenue of $2.48bn, it is clear TPG is feeling the squeeze from the NBN and the ACCC’s merger dispute.