Card Factory reappoints chair despite diversity concerns
Card Factory has has reappointed Paul Moody as its chair despite some shareholders’ concerns regarding its board’s diversity.
The news follows the greeting card retailer’s AGM in June when it received more than 20% of votes cast against the resolution to reappoint him.
In a statement today, Card Factory said: “The board understands, from prior shareholder feedback, that the diversity of the board may result in votes against the chair’s reappointment.”
Since the meeting, Card Factory has consulted with the 12 largest institutional shareholders and said four had supported the reappointment of Moody. It also said that there had been no engagement or explanation from shareholders who voted against his reappointment.
Moody was appointed as non-executive chairman in 2018 and is a former chief executive of Britvic.
Meanwhile, the retailer’s board composition now comprises 33% women, which is below the recommended 40% under listing rules.
Card Factory said: “The board has recently re-assessed the skills and experience of its members and consider this to be appropriate for the Company’s operations and strategic objectives.
“The board recognise the diversity of its membership, across a range of criteria (of which gender and ethnicity are part) and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the 40% recommendation.
“The board will keep all aspects of experience and diversity under review.”
