16th Jul 2014 11:46
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, as the successor to Chairman John Peace, with shareholders staging a mini-rebellion over Robert's re-election as a director at the company's annual general meeting.
Although Robert's re-election was approved, along with the company's other resolutions, 11% of the voting shareholders objected to the resolution. A further 141.2 million shareholders withheld their votes - almost 21% of those eligible to vote. Overall, the votes against Robert's re-election combined with those withheld represented about 29% of the shares.
"We are pleased that all resolutions at today's AGM were passed, including the resolution to elect Don Robert as Chairman of Experian, with nearly 90% of votes cast in favour. As Chairman, Don brings considerable value to Experian and has unrivalled, deep knowledge of the business which he has built up over nine highly successful years as CEO. The board places enormous value on Don remaining with the business, particularly given the retirement of founder, Sir John Peace," according to a company statement.
"We always endeavour to listen carefully to our shareholders and are always happy to engage with any investors on this or any other resolution that was put to today?s meeting," Experian added.
In a statement issued Tuesday, the Institute of Directors said that shareholders had raised concerns about the information services provider's governance arrangements.
The Institute of Directors' concerns came ahead of Experian's AGM, held Wednesday in Dublin. The company's decision had 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
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