25th Jun 2019 17:15
(Alliance News) - FirstGroup PLC said Tuesday its shareholders voted "decisively" against Coast Capital Management LP's attempt to overthrow the transport operator's board.
Hermes-Golden Ltd, which is managed by US-based activist investor Coast Capital, in mid-May called a general meeting to remove six of the current 11 FirstGroup directors, appointing seven of their own choice.
One of their own choices, David Martin, however missed the deadline to confirm his plans to stand for election, meaning only six Coast Capital choices stood on Tuesday.
Coast Capital owns 9.8% of FirstGroup's shares.
At the meeting, FirstGroup noted, on average, the company's shareholders voted 4-to-1 against Coast Capital's resolutions.
71% of shareholders voted against the removal of Non-Executive Chair Wolfhart Hauser.
Hauser, however, announced on Tuesday afternoon he will be stepping down from his role regardless. He said he will not be standing for re-election at the company's annual general meeting on July 25.
Senior Independent Director David Robbie will become interim chair. Robbie is expected to oversee a "formal and rigorous" search for a new chair.
Hauser said: "Having renewed the board through the appointment of independent directors with a diverse range of skills and expertise focused on the future of mobility services and overseen the appointment of Matthew Gregory as chief executive and Ryan Mangold as chief financial officer to drive delivery of the strategy, it is now time for me to move on.
"I am confident that the clear path forward laid out for the group in our strategy announcement on May 30 is the best way to deliver enhanced sustainable value to all shareholders, and that the board and management team will execute these plans at pace."
At the end of May, FirstGroup gave in to investor pressure and revealed plans to sell the Greyhound coach business in the US, and also spin-off its UK bus business.
Elsewhere at the meeting, CEO Gregory saw 75% of shareholders vote against his removal from the board. Independent Non-Exec Imelda Walsh also received 69% of votes in support of her continued place on the board and 75% backed both Independent Non-Execs Stephen Gunning and Martha Poulter remaining on the board.
The lowest support was for Independent Non-Exec James Winstock, seeing only 54% of shareholders reject his removal.
Of Coast Capital's six nominees: Steven Norris, Bob Stefanowski and Uwe Doerken received only 36% votes in favour of their addition to FirstGroup's board.
The appointment of Jim Compton was only supported by 21% of shareholders, Patricia Barron 16% and Elizabeth Filkin 15%.
"The board also notes that more than 20% of shareholders voted in favour of several resolutions against the board's recommendation. The board takes seriously its responsibility to understand shareholders' opinions and will continue to engage with our investors over the coming weeks to discuss any views they may have, as reflected in the votes on those resolutions, as part of its ongoing programme of engagement," the company said.
FirstGroup added that it "welcomes" the support and engagement it had with shareholders over recent weeks.
"The board is confident that the clear path forward for the business that was announced on May 30 is the right strategy to deliver enhanced sustainable value to all shareholders. The board also believes it has the right management to execute this strategy effectively and at pace. This team is committed to unlocking value for shareholders and, under Matthew Gregory's leadership, is already delivering the operational progress and momentum that will be the foundation for FirstGroup's future direction," the company added.
Shares in FirstGroup closed down 0.3% in London on Tuesday at 98.25 pence each.
Related Shares:
Firstgroup