Card Factory has decided to keep Paul Moody as its executive chair, despite a notable portion of shareholders voting against it.
- The decision follows concerns over the lack of diversity on Card Factory’s board, with women comprising only 33%, shy of the 40% guideline.
- A shareholder consultation revealed that out of the 12 largest shareholders, four supported Moody while the rest provided no feedback.
- The board believes its current members have the necessary skills and experience, dismissing the need to add more directors just to meet diversity targets.
- In response to the discontent at the June AGM, Card Factory aims to continue engaging with shareholders on these issues.
Card Factory has opted to maintain Paul Moody in his role as executive chair notwithstanding a significant opposition from shareholders due to diversity concerns. The decision emerged after a secondary shareholder consultation held post the Annual General Meeting (AGM) on June 20, where the issue initially surfaced.
The diversity issue centers around the representation of women on the board, currently standing at 33%. This is below the 40% threshold suggested by official listing rules. The firm had reached out to its 12 biggest institutional investors to gauge their stance, revealing mixed support. Four of these shareholders stood by Moody’s reappointment, yet no counter-feedback was given by those in opposition.
The board’s stance, communicated on December 16, emphasized their confidence in the existing board members’ skill set and experience, which they view as aligned with the company’s objectives. The organization conveyed it does not deem it beneficial for shareholder interests to appoint additional directors solely to adhere to diversity recommendations.
During the AGM in June, nearly a quarter of shareholders expressed dissent concerning Moody’s leadership due to diversity issues, prompting the company to commit to ongoing dialogue with its investor base regarding their concerns.
Card Factory continues to engage with its shareholders while maintaining confidence in its board’s current composition.
