Card Factory faced shareholder dissent regarding board diversity after reappointing Paul Moody as chair.
- The reappointment vote, conducted post-AGM, saw significant opposition.
- 20% of shareholders expressed concerns by voting against the chair’s return.
- Diversity issues highlighted, with only 33% female representation on the board.
- No substantive engagement from dissenting shareholders was reported.
Card Factory, amidst notable shareholder resistance, has decided to retain Paul Moody as its chair. This decision follows a post-AGM consultation with shareholders, where concerns about diversity on the board were raised.
The discussions with the company’s top 12 institutional shareholders concluded with 20% opposing Moody’s reappointment. Despite this substantial opposition, the company moved forward with his reappointment, a role he has held since October 2018, after leading Britvic as CEO.
The board acknowledged the feedback received, especially regarding diversity. Women currently constitute only 33% of the board, below the recommended 40% as per the listing rules. This shortfall has been a pivotal point in the discussions about the board’s composition.
Despite reaching out to its largest shareholders, Card Factory reported that there was no detailed explanation from those opposing the reappointment. Only four of the major shareholders backed the decision, highlighting a disconnect between the company’s leadership and its stakeholders.
The board defended its decision by detailing a reassessment of its members’ skills and experiences. They argued that the current composition aligns well with the company’s strategic goals. They also stated that hiring solely to meet diversity targets might not serve the shareholders’ best interests.
Earlier in June, a significant portion of shareholders voiced their concerns during the annual general meeting, signalling a need for the company to address these pressing issues.
Card Factory’s decision to reappoint its chair demonstrates a focus on experience over meeting diversity benchmarks.
