Shareholders look for change at Morrisons
Sir Ken Morrison faces calls for board revamp
Sir Ken Morrison, executive chairman of supermarket group Morrisons, is facing new calls to bring the board into line with best corporate governance practice.
In the face of a new profits warning from Morrisons, issued on Friday, two key shareholder lobby groups have renewed criticism of Morrisons.
The Association of British Insurers (ABI) confirmed that it has issued a ‘red-top’ warning to Morrisons shareholders in advance of the company’s annual meeting on May 26. The warning highlights serious concerns about corporate governance standards in a company.
The National Association of Pension Funds has called on shareholders to vote against re-electing Sir Ken as chairman at the meeting.
Criticism over Morrisons’ failure to appoint non-executive directors is nothing new, but while sales and profits were rising year after year Sir Ken was in a strong position. The ongoing cost of integrating the Safeway business, and its impact on Morrisons profits, has changed the picture.
The company has appointed some non-executives, including bringing in Next chairman David Jones as non executive deputy chairman, and has also said it is working on a succession plan for all board positions, including 72-year-old Sir Ken’s eventual replacement. The company is also looking for a new finance director to replace Martin Ackroyd, who left in March.
