16th Jul 2014 08:19
LONDON (Alliance News) - Experian PLC, which provides services such as credit checking and financial risk analysis, has come under fire over its decision to appoint its current chief executive, Don Robert, to succeed Chairman John Peace.
In a statement issued Tuesday, the Institute of Directors said that shareholders have raised concerns about the information services provider's governance arrangements.
The Institute of Directors' concerns come ahead of Experian's annual general meeting, to be held later on Wednesday in Dublin, where the company is seeking approval of the appointment. The company's decision has come under scrutiny as the UK Corporate Governance Code explicitly states that a CEO should not go on to be chairman of the same company.
"Shareholders have understandably raised significant concerns about the decision of the board of Experian to appoint Mr Robert as their next chairman. Experian have contravened a key provision of the Corporate Governance Code that a CEO should not go on to be chairman except in the most exceptional circumstances," IoD Corporate Governance Adviser Oliver Parry said in a statement.
"There is no doubt that Mr Robert has been a key player at Experian. However, a desire to maintain continuity should not come at the expense of the board's ability to exercise independent oversight over the company," Parry added.
Parry said the Institute of Directors has "significant concerns" unless the appointment is a temporary measure, pending the selection of an appropriate independent chairman.
Under a January boardroom shuffle, Experian said that current Chief Executive Don Robert to replace John Peace as chairman, with current Chief Financial Officer Brian Cassin chosen to become the company's new CEO.
Experian shares were Wednesday quoted flat at 1,029.00 pence.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Experian