Card Factory proceeded with the reappointment of its chair, Paul Moody, despite notable shareholder opposition.
- Over 20% of shareholders voted against Moody due to perceived lack of board diversity.
- Moody’s return comes amid consultations with key institutional shareholders post-AGM.
- Board diversity at Card Factory is at 33%, falling short of recommended 40%.
- No feedback was received from shareholders who opposed the reappointment.
Card Factory has confirmed the reappointment of its chair, Paul Moody, even though a significant portion of shareholders expressed their dissent. In recent votes, over 20% of shareholders opposed Moody’s return as chair, citing diversity concerns within the board. Moody, who initially took the chair in October 2018 after a tenure as CEO of Britvic, faced reappointment after consultations with the company’s major institutional shareholders.
These consultations followed the annual general meeting in June, where the issue of diversity was a focal point. Card Factory’s board currently has a composition of 33% women, which is below the 40% suggested under listing regulations. Despite this, the board expressed confidence in its current makeup, emphasising that the skills and experience present are well-suited to their operational and strategic goals.
The board has acknowledged the diversity feedback from shareholders, recognising that the existing structure might not meet expectations. Nevertheless, it decided against adding a new director solely to meet diversity targets, suggesting that such a move might not serve shareholders’ best interests.
Since the AGM, Card Factory’s largest shareholders have been consulted with varied responses. Notably, four of the twelve largest shareholders supported Moody’s reappointment, however the company reported not receiving engagement from those who voted against his leadership. The firm continues to engage in dialogue with its stakeholders to address these concerns.
Card Factory remains committed to aligning with shareholder expectations while balancing strategic goals.
