Southern Cross CEO John Kelly defends dividend as Sandon Capital circles
The ASX-listed audio boss has defended his company's decision to resume paying dividends after coming under fire from Sandon Capital, which is seeking to spill the board.
Southern Cross Austereo CEO John Kelly has defended the radio and regional television broadcaster's incentive scheme and a decision to resume paying dividends after both were criticised by Sandon Capital as part of an activist campaign to spill the company’s board.
Kelly rejected the suggestion that Southern Cross had moved to resume paying dividends to secure the short-term support of its shareholders. He said the company’s decisions around debt and dividends were made off the back of talks with investors around its half-year results.
Kelly also hit back at Sandon’s criticism of Southern Cross’s revised executive pay scheme for the 2026 financial year, which was revealed to investors earlier this month. He said the incentives show management has confidence in ongoing share price growth.
“The fact of the matter is, as CEO, we were clearly involved in discussions with our board as to those levels. And I think that demonstrably evidences our confidence in the business. Our share price is 74, 75 cents, and the first trigger is $1 over a three year period,” Kelly told Capital Brief.
