Good morning, ladies and gentlemen. Try following that, right? That might be the highlight of the meeting. Good morning, and thank you for joining us today for our 2024 Annual General Meeting. On behalf of the board, I would like to acknowledge the Gadigal people of the Eora Nation, traditional custodians of the land on which we are hosting this event today, and pay my respects to elders, past and present. My name is Duncan West. I'm the Chair of your company, Challenger Limited, and the Chair of today's meeting. It's now 9:30 A.M. I'm advised by the Company Secretary that there is a quorum present, and I would like to declare this morning's meeting open.
The minutes of the previous meeting of shareholders of Challenger Limited, which was the annual general meeting held on the 26th of October, 2023, were approved by the board and signed by me as chair of your company, and are tabled today for the information of shareholders. Today's meeting will be recorded, and the recording will be available to view shortly after the AGM. For those of you present in person, as a courtesy to our fellow attendees, please ensure your mobile phone is turned to silent. Before we commence the formal aspect of today's meeting, I would like to introduce the members of your board, starting with, on my immediate right, Managing Director and Chief Executive Officer, Nick Hamilton, our Non-Executive Directors, Heather Smith, John Green, Lisa Gray, Masahiko Kobayashi, Joanne Stephenson, and Melanie Willis.
We also have with us today Graeme McKenzie, who is partner at Ernst & Young, the company's auditor. In the front row are members of Challenger's executive team, and they include Alex Bell, Challenger's Chief Financial Officer; Anton Kapel, Chief Executive, Life and Solutions; Victor Rodriguez, Chief Executive, Funds Management; Mandy Mannix, Chief Executive, Customer; Stuart Kingham, Chief Commercial Officer; Chris Plater, Chief Risk Officer; Louise Roche, Chief Human Resources Officer. We are also joined by Challenger's Company Secretary, Linda Matthews; General Counsel, Aaron Rattu; and General Manager of Investor Relations, Mark Chen. There are three major components of this meeting. Firstly, I'd like to provide an update on your company and our performance over the past year. Then I'll hand over to Nick, who will provide an overview of Challenger's achievements and progress in its strategy. We'll then move to the formal items of business for the meeting.
You will hear from John Green, Heather Smith and Lisa Gray as they seek election today. We'll be opening the floor to questions on our business and the resolutions to be considered later in today's meeting. Voting on each resolution will be conducted, for those of you in attendance in person, by poll via your smartphones or the voting card you received when you entered the meeting. For those attending online, voting will take place via the online meeting portal. I'll now explain the procedures for asking questions and voting in today's meeting. For those of you attending in person, to ask a question, please approach the microphone in the room when instructed later in the meeting, and at the appropriate time, you'll be invited to ask your question.
For those of you attending online, you can submit questions at any time, and you do not need to wait until the relevant item of business. We encourage you to submit your questions as soon as possible. For online participants, to ask a question, and appointed proxies can submit questions either in writing or verbally. To submit a question in writing, shareholders and proxies should firstly select the Q&A icon on your screen. Secondly, type your question into the chat box at the bottom of the screen and press Send. To ask a verbal question, please follow the instructions on the online meeting platform. Please keep your questions relevant to the business of the meeting and the resolutions being considered today. Questions sent via the online meeting platform will be moderated to avoid repetition, and if questions are lengthy, we may need to summarize them in the interests of time.
For those attending the meeting in person, if you are eligible to vote, you can scan the QR code on your blue attendance card with your mobile phone at any time. This will take you to the Terms and Conditions page, and once you accept the terms and conditions, to an online voting page. For those participating online, if you are entitled to vote, you can select the Vote icon, and the voting options will display on the screen. For those using the QR code and those online, to cast your vote, simply select one of the options for each item of business. There is no need to hit a Submit or Enter button, as your vote is automatically recorded. You will receive a vote confirmation notification on your screen.
For any person voting using their mobile device or voting online, if you change your mind, simply select a new option by tapping it on the screen. Your original vote will be canceled, and your new selection will be counted. For those attending in person who do not have a mobile device, you may complete the voting items on the reverse side of the blue attendance card, and the Computershare team will collect these prior to the close of voting at the end of the meeting... I understand that shareholders may not be able to stay for the entire meeting, so I will declare the poll open now. This means you can vote on all items of business at any time until I declare the poll closed at the end of the meeting.
I will give you a warning before I close voting, and results of all items of business will be notified to the Australian Securities Exchange as soon as practical after today's meeting. The board recommends that shareholders vote in favor of all items of business. Further details on the items are set out in the notice of meeting. For those joining us online, if you experience any technical difficulties, the help number is displayed at the bottom of the page where you enter your login details. At the conclusion of the meeting, we'd like to invite those attending in person to join the directors and executive team for refreshments in the foyer. Turning now to my address. For almost forty years, Challenger has helped provide customers with financial security for a better retirement.
In 2024 , the need and opportunity to provide Australians with financial confidence in retirement continues to grow. As we look forward, our confidence in the role that we play and the opportunity for our business also increases. At Challenger, the board, management, and team are focused on delivering this important need and driving long-term, sustainable growth for you, our shareholders. Over the last decades, Challenger has built a reputation as a leading retirement income brand in Australia with one with a very clear purpose. Our business is uniquely positioned to benefit from a range of long-term drivers. Most of our country's wealth now sits with those preparing for and in retirement, with Australians having benefited from over thirty years of compulsory superannuation. However, with higher cost of living and market volatility, many retirees today live with the real concern that their savings could run out.
As I outlined at last year's AGM, there is a pressing need to finish the important work of consecutive policymakers and deliver a retirement income system that provides financial security and peace of mind for older Australians. Regulatory reform will be essential to achieving this, and progress continued to be made this year. Treasury's consultation on the retirement phase of superannuation highlighted the need for better access to information, advice, and well-rounded retirement income solutions. Ongoing financial advice reforms must help ensure that older Australians have open access to affordable, high-quality advice as they prepare for and enter retirement. APRA has recognized the importance of ensuring Australians have greater access to longevity-style retirement products, such as annuities. We welcome the regulator's current direction and look forward to the opportunity that regulatory reform would present to increase the availability of suitable retirement products.
Amending Australia's prudential capital standard settings, which are unique compared to our international counterparts, would also deliver significant benefits to customers and ensure that the life insurance industry could meet future demand. To drive meaningful change, we must look at the retirement market holistically. Greater education will help raise awareness of the benefits of a lifetime income stream. Reforms have the potential to boost demand. An improved prudential capital framework will ensure a range of market players and products exist to meet that demand. These are all necessary conditions required to build a retirement income system to match Australia's first-class accumulation scheme. The retirement challenge is well understood. The focus must now be on implementing effective regulatory reform to ensure that Australia has the right policy settings to address the needs of retirees today and well into the future.
This will require a coordinated effort, including the commitment of government and regulators, to complete the raft of reforms underway. As a leader in retirement income, we are committed to working with industry, government, and regulators to strengthen the retirement phase of superannuation and deliver better retirement outcomes for Australians. Moving now to our business performance. Challenger delivered a strong performance in 2024, with the benefits of our strategy really starting to show in the results across our core business. Normalized net profit before tax increased 17% to AUD 608 million, which was above the top end of our guidance range. Assets under management reached AUD 127 billion, up by 21%, driven by life book growth, and funds management net flows.
Strong life sales, particularly in longer term and lifetime annuities, demonstrates momentum in the life business and our expertise in providing guaranteed income. The results supported a higher normalized return on equity, an important measure in our business, which increased by 290 basis points, and we are pleased to confirm that we are on track to meet our ROE target in this financial year. Challenger is also strongly capitalized, with AUD 1.8 billion of capital in excess of APRA's minimum requirement, and this translates to a PCA ratio of 1.67 times. This is very important, as it ensures the resilience of our business, as well as supporting future growth. Reflecting the business' strong financial performance, the board determined a full year dividend of AUD 0.265 per share, an increase of 10% on last year.
I'm very pleased with the performance of Challenger in 2024 , which demonstrates the strength of our core business, which will deliver shareholder value over the long term. Your board brings a compelling and diverse skill set to guide the business, particularly across governance, strategy, risk, and customer. This year, we were pleased to welcome Lisa Gray as a non-executive director. Lisa is a highly experienced director and brings a focus on customer and digital innovation, and stands for election today. Heather Smith and John Green will stand for re-election. Heather and John are both highly capable and experienced directors, and their re-election is strongly endorsed by the board. You will hear from Lisa, Heather, and John later in the meeting. Last month, Matthew Michelini stepped down as Apollo's representative on our board.
This followed a reduction in Apollo's shareholding to below the agreed minimum required to maintain a seat on our board. In the past year, Challenger and Apollo have identified several ways to work together for mutual benefit, which Nick will outline. In the coming year, we will continue to assess the necessary expertise and skills across our board to ensure effective oversight of our business, with a focus on industry and digital expertise. Ensuring a strong, sustainable business is crucial to our long-term success and the promises we make to our customers. In 2024 , we continued to make progress in addressing our most significant environmental, social, and governance risks and opportunities with a particular focus on climate change. Our climate risk program is now underway that will help identify and manage climate-related risks and opportunities across our investments and operations.
This includes an operational emissions reduction strategy with a target to be net zero across Scope 1 and 2 emissions by the end of 2025 financial year. At Challenger, we recognize that a high-performing, diverse, and inclusive team is key to our longer-term success. I'm pleased to report that in 2024 , we achieved our gender diversity targets across the business, including on the board, leadership team, and management. We are also making progress towards a zero gender pay gap with a median gap of 9.3%. That is well below the industry median of 23.2%. Reflecting on our ongoing commitment to gender equality, Challenger has once again been recognized as an employer of choice by the Workplace Gender Equality Agency, a citation we've held since 2018 . 2024 was another successful year for Challenger.
Our performance reflects our focus on executing our strategy and the strengths of our fundamentals. Over the past year, we have also made key strategic decisions that will set up Challenger to benefit from long-term structural drivers. Looking ahead, Challenger has an incredible opportunity to provide even more retirees with financial security at the same time as delivering long-term sustainable growth. This will, in turn, drive strong returns for you, our shareholders. On behalf of the board, thank you for your ongoing support. To our customers who trust us to safeguard their financial security in retirement, thank you. To Nick, the leadership team, and wider business, thank you for your energy and commitment. And to my fellow directors, thank you for your dedication in overseeing our business. I'll now hand over to our CEO and Managing Director, Nick Hamilton, to address the meeting.
Thank you, Duncan, and good morning, everyone. I'm pleased to be here to provide an update on our performance and achievements in 2024 . Challenger is a unique, purpose-driven business with core strengths in retirement, investment management, and asset origination, with the team transforming our business to meet the significant opportunity ahead. The role we play in our customers' lives extends well beyond an immediate financial product. When a retiree entrusts Challenger with a part of their retirement savings, they benefit from the financial confidence that our guarantee provides, which for a retiree, is such an important part of ensuring that they can live their best retirement. Challenger has long invested in research to better understand what it means to enjoy a happy and comfortable retirement....
Our research consistently shows that financial security is a top priority for retirees, and we anticipate very material growth in the market for retirement products in the years ahead. The findings of our research are brought to life by people like Maggie, who took the time to send us a letter earlier this year. At eighty-five years young, Maggie's enjoyed regular payments from her Challenger annuity for two decades.
Maggie says, "As a single woman who retired after a long and happy career, but with a very modest superannuation package, my Challenger investment over these last twenty years has given me great peace of mind that each month, my payment would be deposited into the nominated bank account, and over that period, I've been able to plan with complete confidence." It's letters like this from people like Maggie that speak directly to our purpose and why our role in providing financial security in retirement really matters. Our strategy is built around our competitive strengths and the strong fundamentals of our business. Challenger Life is Australia's leading retirement income brand, delivering secure and reliable income streams. Every year, we make billions of dollars of guaranteed payments to our customers, including products with inflation-protected options.
Over the last two and a half years, we have maintained our focus on executing our sales remix strategy. This provides a platform for longer duration, more valuable annuity sales. It reduces the maturity rate and delivers higher quality book growth. This is a trend that we saw continue through our most recent quarter result. Our funds management business is one of Australia's largest active fund managers, with more than 117 billion in funds under management in 2024, and has built a reputation for its credit origination, investment, and distribution capabilities. Our multi-affiliate platform, Fidante, spans a broad range of high-quality, traditional, and alternative asset classes, and their long-term performance remains strong. 93% of investments outperformed benchmarks over the past five years.
Challenger Investment Management is one of Australia's largest and most experienced originators and managers of private credit, providing investment solutions for our customers and yield for our life business' balance sheet. As we focus on our core strengths in life and funds management, we took the strategic decision to sell the bank, which completed this year. We also continue to pursue our long-term partnership with our strategic shareholder, MS&AD, as well as our commercial partnership with Apollo. I'm pleased to report that Challenger delivered a strong performance in 2024 as we focused on executing our growth strategy across our three strategic pillars. Importantly, we also made key decisions that have simplified our business model and further strengthened and broadened our ability to capture the market opportunities ahead.
As we position Challenger as Australia's retirement income leader, we've commenced a replacement of our life business' customer technology, a program that, once complete, will step change how we engage with current and future customers. This past year, we developed partnerships with superannuation funds as they begin to deliver retirement solutions for their members and continue to expand our training activity with advisors, particularly for our Lifetime and Care Plus products. We were delighted to extend our long-standing reinsurance relationship with Mitsui Sumitomo Primary for another five years. This now includes reinsurance of Japanese yen-denominated annuities, as well as Australian and U.S. dollar-denominated annuities, all of which are issued in Japan. We are exploring more ways to partner and work together to support growth for both businesses. As you saw in the video played earlier, we have invested in building and strengthening our brand.
Our brand partnerships with the PGA of Australia and Melbourne International Flower and Garden Show allow us to showcase our business to more Australians and closely aligns with our core demographic of those preparing for and in retirement. We've continued to expand our funds management business as we invest in our capability and offering to meet increasing client demand. This year, Fidante has added new investment strategies, particularly in alternatives. We've also expanded our asset origination capability to include whole loan management and servicing. This will support Challenger Life and will provide a new growth channel for funds management, and we've worked with Apollo on asset origination that has recently included a domestic forward flow loan agreement. Our business is built on the talent of our people, and we're committed to supporting their growth and ensuring Challenger remains an employer of choice.
This year, we made strategic investments into our customer and technology platforms that will enable our growth plans.
... Our customer experience uplift program that I mentioned earlier, will deliver a more scalable and innovative platform. This will be a game changer for our business and allow us to deliver more retirement income solutions to customers, advisors, platforms, and superannuation funds. We've also announced that State Street will provide our investment administration and custody services. This will support our business's growth strategy and accelerate our path to a highly scalable investment administration platform. 2024 was undoubtedly a year of delivery for Challenger, where we executed on our strategy and made important investments to support our future growth. We're delighted to continue to support organizations that contribute so positively to local communities. Now, in its third year, our partnership with Women Up North has helped deliver vital services to hundreds of women, children, and young people experiencing domestic and family violence in northern New South Wales.
The Challenger team and I are very proud of the relationship we have built with the incredible team at Women Up North as we support their important work. Our now annual fundraising gala, held in Lismore last weekend, helped raise awareness of their invaluable services, brought the local community together, and provided much-needed financial support for their organization. We've also expanded our partnership with FoodLab Sydney, a social enterprise supporting food entrepreneurs from marginalized communities, to now also include fundraising, volunteering, and marketing support. I'm very pleased with what we've achieved in 2024 . We delivered a strong financial performance, we simplified our business model, and have a clear growth strategy that is delivering results.
The important strategic decisions we made this year, investing in our technology, our capabilities, and our people, reflects our ongoing focus on the fundamentals of our business and will support our long-term sustainable growth. Looking ahead, we are well-positioned to leverage our core capabilities to provide.
Undirected proxies have been given in favor of the chair for a resolution. I will vote these proxies in favor of each resolution, as was indicated in the notice convening this meeting. The first item of business relates to Challenger's financial reports, and there is no resolution for this item. As I mentioned earlier, we've got Graeme McKenzie, our external auditor, Ernst & Young, present at today's meeting.
He'll be able to answer any questions relating to the conduct of the audit, preparation and content of the auditor's report, and accounting of policies adopted by the company in preparation for the financial statements. Ernst & Young did not receive any written questions from shareholders prior to the meeting, so I will open up to questions from the room. Are there any questions from the room? No, I don't think so. I will then go moderator for questions from those attending online.
Thank you, Chair. The first question comes from Mr. Stephen Mayne. Did any of the five proxy advisors recommend a vote against any of today's resolutions, including on John Green's re-election? If so, what other reasons did they give? And will you disclose the proxy votes before the debate on each resolution, so shareholders can ask questions about the reasons, if there have been any protest votes? It is standard for companies to be across the detail on the voting recommendations and inform shareholders where relevant, without publishing the full proxy advisor reports.
Thank you, Mr. Mayne, and welcome to our shareholder registry. We're delighted to have you as a shareholder. Oh, a few questions in there. Firstly, have we had any proxies vote against? We have the Australian Shareholders' Association have recommended against on two items, the remuneration report and the LTI grant to the CEO. The rationale for their voting against is, I think, threefold. Firstly, they don't like the use of normalized returns in the STI plan. The second is they don't feel we gave enough detail in the annual report on the targets for the STI balance scorecard. And the third item is to do with the culture measure in the LTI plan, and they don't like the way we've framed that.
I'm sure if there's anybody here from the ASA, they will be able to talk to those items later on. Obviously, from a board point of view, that's not a view we take on those items. So that's, that's the first piece. Second piece, we will be putting up the proxy numbers, in advance, and the third piece is there are all proxies have, recommended in favor of John Green. Any further questions?
The next question, again, is from Mr. Stephen Mayne. When disclosing the outcome of voting on all resolutions today, could you please advise the ASX of how many shareholders have voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on each resolution into the chronically low retail shareholder participation rate.
Thank you, Mr. Mayne. It isn't our plan this year to do that. That is, we will abide by the ASX rules. We will, however, consider your request in future years. Any further questions?
There are no further written questions on this resolution.
Do we have any questions, verbal questions from those attending online?
There are no verbal questions.
Thank you. If there are no further questions on this item, we'll move to the second item. The second item relates to the re-election of John Green, Heather Smith, and the election of Lisa Gray as non-executive directors of Challenger. You'll now hear from John, Heather, and Lisa, who will speak briefly to you on their proposed election. John will speak first to his re-election. John?
Thanks, Duncan, and thank you, ladies and gentlemen. I feel like after the video before, I should be dancing and singing and not speaking, but I will speak instead, which is lucky for you. It's always good to have the support of someone like Stephen Mayne at meetings like this, and so thank you, Stephen. I've been one of your directors since December 2017, and a member of several board committees: audit, risk, remuneration, nominations, and for the period that we owned the bank, I was chairman of the bank. I bring a mix of experience to the Challenger board, spanning corporate, financial services, legal, technology, and an acute sense of curiosity and challenge. I've had many years of public company experience, both as a non-executive director and as an advisor to boards in the past.
As a result, I've been involved with many companies, large and small, Australian and overseas. And over the past seven years on this board, I've endeavored to use my experience, including in strategy, risk, cybersecurity, capital management, to assist and support the Challenger team as they deliver for our customers and our shareholders. In addition to my work with Challenger, I'm involved in a number of other organizations. I was recently appointed the first independent chair of PwC Australia's governing board, and I note that PwC is not Challenger's auditor. I'm also chair of the University of Wollongong's Global Enterprises Company, which takes high-quality Australian education to developing countries like Dubai, Hong Kong, Malaysia, and India, where we teach thousands and thousands of local students.
I'm also a non-executive director of the Cyber Security Cooperative Research Centre, which has funded approximately 90% of the cyber research in Australia in its seven-year history. During my 30-year executive career, I was an executive director at Macquarie, running for a time, its financial institutions group. Prior to that, I was a partner at two major law firms, now known as Ashurst and Herbert Smith Freehills, where I headed the National Mergers and Acquisitions group. I'm also a novelist, having recently released my sixth thriller, which you all must read, and with my family, I co-founded an award-winning independent book publisher, Pantera Press, which we recently sold to another fabulous independent publisher, Hardie Grant. Like my board colleagues, I'm very committed to Challenger's vision to provide financial security for our customers for a better retirement.
As we deliver on that purpose, we will also create shareholder wealth over time. Thank you. I'll hand back to Duncan.
Thanks. Thank you, John. An excellent contribution you made and an excellent director you are. I'll open to questions from the room, if there are any. No questions in the room. I'll ask Mark, are there any questions, written questions from those attending online?
There are no written questions.
Are there any verbal questions from those attending online?
No verbal questions.
Okay, thank you. So if you would please cast your vote now on this item, if you haven't already done so. I'll give you a second to do that... Before I ask Heather to now speak to her re-election. Heather?
Thank you, Duncan, and good morning, everybody. It's also my pleasure to speak with you today as I seek re-election to the board. I was appointed to Challenger's board in January twenty twenty-one, and am currently chair of the Group Audit Committee and a member of the Group Risk Committee, Group People and Remuneration Committee, and our Nomination Committee. I joined Challenger just as the world was beginning to normalize coming out of COVID. I think it's testament to the management and the staff of Challenger that the past three years have been one of consolidation and transformation. Under Nick's leadership and his dedicated management team, Challenger has delivered strong financial performance and shareholder returns. This has required strategic ambition, focused leadership, and an inclusive and risk-aware culture, and I'm really proud to have been part of that journey.
I seek your support today to continue that journey as we progress on our strategy to simplify the business, diversify the balance sheet, and create long-term sustainable growth. I'm particularly excited by the potential Australia's retirement income system affords Challenger, as we become more customer-centric and respond to the growing demand for a broader range of retirement solutions. I have over 20 years' experience in government, including as CEO of two Commonwealth departments and as a member of several public sector boards. I currently serve on ASX-listed boards, advisory boards, and a national president of a not-for-profit board. I recently co-led the review for the Prime Minister into Australia's National Intelligence community. My government and corporate experience, along with my economic, foreign, and national security background, I believe, has brought new perspectives to the board.
This experience will continue to be relevant in a global environment characterized by unprecedented uncertainty and disruption. As Chair of Challenger's Audit Committee, I'm committed to working with the board and management to ensure that we maintain strong corporate governance and an approach to sustainability that meets our stakeholder and community expectations. It has been a privilege to be part of a company with such a clear purpose of providing financial security in retirement. Together with my fellow directors, I'm committed to delivering for our customers and to ensure shareholder value over the long term. I seek your support today to allow me to continue to work with my board colleagues and management to serve you. Thank you for your time today. Back to you, Duncan.
Thank you, Heather, and Heather has definitely brought a new and fresh perspective to the board, which we've really welcomed having you on the board, and you made a significant contribution. I will open to questions for the room on this item. Does anybody in the room have a question? No. Mark, are there any questions, written questions online?
There are no written questions.
Thank you. And are there any verbal questions online?
There are no verbal questions.
Thank you. So I'd ask you, if you haven't already, to please cast your vote on this item. Okay, I will now pass to Lisa, Lisa Gray, to speak on to her election. Lisa?
Thank you, Duncan, and good morning, everyone. I joined Challenger's board in November 2023, and I'm pleased to speak to you today, regarding my nomination for election as a non-executive director. Challenger has an extensive and successful track record in investment management, and as Australia's leading retirement income brand, plays an important role at the forefront of our retirement income market. Challenger's purpose, to provide customers with financial security for a better retirement, resonates strongly with me, and I believe my skills and experience position me well to contribute to the next phase of Challenger's growth and transformation. I bring thirty years' experience leading and transforming companies from startups to large businesses across the private and public sector. My experience spans investment management, banking, superannuation, wealth management, and life insurance.
Recent executive roles include CEO of Victorian Funds Management Corporation and Group Executive, Enterprise Services and Transformation, and Group Executive, Personal Banking, both at NAB. These roles involved leading businesses through technology, digital, and cultural transformation in highly regulated industries. I also bring strong strategic and governance experience, going through my directorships on the boards of ING Bank Australia and Bupa Australia and New Zealand, where I chair the risk committees of both companies. On the Challenger board, I'm currently a member of the Group Audit Committee, the Group Risk Committee, and the Nomination Committee. In addition to my relevant experience, I have the required capacity and commitment to meet my obligations as a non-executive director and a committee member for Challenger. With your support for my election, I will work hard to make a positive contribution on your behalf and for our people and customers.
Thank you. And back to you.
Thank you, Lisa, and we're delighted to have you on the board, and we've really enjoyed your contribution and look forward to voting a future contribution as well. So I will ask first for questions from the room. Are there any questions from the room? No, I don't think so. Mark, are there any written questions online?
There are no written questions.
Are there any verbal questions?
There are no verbal questions.
Okay. If you haven't cast your vote, please, on this item, please do so now. But given you will have seen the proxy numbers come up on the screen, so I think it's probably safe for me to congratulate John, Heather, and Lisa on their election and re-election, and we're delighted to have them on the board for another term. So thank you. And you'll see that when we talk about diversity, when you just hear the three of them talk their different life experiences and perspectives gives you a sense on what diversity in action really is, and the breadth of that life experience and professional experience that it brings to our board discussions is fantastic. The third item relates to the adoption of Challenger's remuneration report, which is contained within the 2024 annual report.
And again, I will open this up for questions. Firstly, questions in the room. No questions in the room. Okay. Mark, are there any written questions?
There are no written questions.
Thank you. And are there any verbal questions?
There are no verbal questions.
Okay. I will then ask you to please cast your vote for this item if you haven't already done so. The fourth item relates to the grant of long-term hurdled performance share rights to the Chief Executive Officer and Managing Director, Mr. Nick Hamilton. And again, I will open up for questions in the room. And I can't see anyone rushing to the microphone, so I'm assuming there are no questions in the room. So we'll go again to questions, written questions online.
The next question comes from Mr. Stephen Mayne. Would the CEO please summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold any shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company?
Thank you, Mark. Maybe I'll deal with the vesting, and then I'll ask Nick to talk to his own position in terms of share sales and so on. So, since between 2016 and 2023, he was granted 1,618,170 HPSRs, of which 336,272 have vested, 282,935 have lapsed, and 998,963 remain unvested and on foot, with vesting subject to Challenger's annual TSR thresholds and an assessment of culture for the HPSRs awarded from 2023.
Deferred short-term incentives include a 183,925 deferred performance share rights granted between 2016 and 2020, which have all vested based on the vesting conditions. Deferred STIs are 400,710 restricted shares, which have been granted between 2021 and 2024, of which 143,760 have vested based on vesting conditions, and 256,950 remain on foot. I knew that off by heart, of course. Nick, maybe I'll ask you to just comment on your own.
Yeah. Thank you, Duncan. So, as Duncan's outlined, I've received shares in Challenger through the remuneration system. Since being CEO, I have not divested or sold of any shares. And without going back in and checking, I think it's been at least six years since I've had any divestments of Challenger stock, so I have been accumulating the position.
Thank you, Nick. Mark, are there any further questions?
Not in relation to this item, Chair. There is an item later on, on the general business.
Thank you. All right, I assume there are no verbal questions?
There are no verbal questions.
Okay, then please cast your vote now on this item if you haven't already done so. And then I will just ask for that general question, Mark, that you have, if that's...
The next question comes from Mr. Stephen Mayne. Australia is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities on the ASX falling from or by 170, or 7.4%, to 2,124 since June 2022, including 20 straight months of declines. There have already been 27 major takeovers above AUD 200 million completed so far this calendar year, with another 10 deals announced and in the works. The ASX is losing long-standing names such as CSR, Boral, Blackmores, Newcrest, and Crown, which have all disappeared over the last three years. This is a clear mispricing between public markets and private markets. Why are public markets not valuing ASX-listed companies like ours more highly?
What are we doing to avoid being gobbled up like so many other companies? Does the Chair agree this is a problem for the nation, particularly with so few new floats replenishing the ASX ranks?
Thank you, Mr. Mayne, for your question. A couple of things I would just say in response to that. From our perspective, we are absolutely laser-focused on driving shareholder, long-term shareholder return, and that is the most important thing that we can do as a listed company in the public markets, and we will continue to do that going forward. In terms of public and private markets, my own view is that it is important that we have both vibrant and well-working public and private markets. Are there any further questions, Mark?
There are no further questions.
Okay. If there are no further questions, that concludes the items of business for today. Ladies and gentlemen, we've now considered all the items of business for this meeting. I would like to advise that voting on all resolutions will close shortly. I'll provide a few moments now for you to finish voting. If you're in the room and are voting by completing the blue attendance card, these are now gonna be collected by the Computershare staff in the room. Okay, I think we've got all those, so I'll now declare the poll closed for all items of business. The results of the polls for each item of business will be notified to the Australian Securities Exchange as soon as practicable after today's meeting. That concludes the formal business of the meeting. Thank you for joining us today and for your participation and feedback.
I'll now close the meeting, and thank you for your attendance. Please do join us for a cup of tea or coffee and our-