Sir Ken to meet with Morrisons shareholders
Moves to head off AGM revolt
Sir Ken Morrison is reported to be meeting with key shareholder groups ahead of this week’s annual meeting of the supermarket group.
Morrisons faces the possibility of a significant number of shareholders voting against the company at it’s annual meeting on Thursday.
Sir Ken is said to be meeting with key institutional shareholders, rallied by the Association of British Insurers. The ABI has issued a red top alert to its members, indicating serious corporate governance concerns. Rrev, which advises members of the National Association of Pension Funds, has also raised concerns.
At the heart of the issue is Sir Ken’s long-standing reluctance to appoint non-executive directors. Following a series of profits warnings in the wake of Morrisons’ takeover of Safeway last year, shareholder groups have increased calls for Morrisons to come into line with best corporate practice.
David Jones, chairman of fashion retailer Next and recently appointed non executive deputy chairman of Morrisons, is reported to be close to agreeing two more non-executive appointments to the board. However, it is not clear whether new appointments will be announced this week.
