Boohoo will face an investor rebellion at this week’s annual meeting. Shareholders and advisors have expressed concern about the role of co-founders in the labor abuse scandal that has rocked fast fashion companies.
The Manchester-based group said last summer Labor abuse Among UK suppliers, whose wages are well below the minimum wage, we have been trying to convince shareholders that the garments are ethically made ever since.
Glass Lewis, an influential adviser to the Institute Shareholder Services and many of the world’s largest asset management companies, is Carol Kane, whose investor is co-founder and secretary general of a fashion company. Proposed to vote against the re-election and insisted on Kane’s supply chain. Problems were allowed to occur under her supervision.
Co-founder and chairman of the company, Mamood Kamani, will be reelected in 2019 and will not face a vote this year. However, Glass Lewis also suggested that he was also concerned about his existence, saying, “The board of directors may be better placed to ensure independent oversight. .. Founder executives. Without the potential conflict faced by the existence of. “
Sébastien Thevoux-Chabuel, portfolio manager at Comgest, the top 20 shareholders, said he has voted against several directors, including Kane, over concerns about addressing environmental, social and governance issues on the board. I did.
“While the company is listening to us … Also, because we have achieved the ESG roadmap, we have not made the expected progress on the composition of the board, and the ESG issues at the board level. Governance has improved significantly, “he told the Financial Times. He also voted against executive compensation at Boohoo.
Glass Lewis said Kane, who served as Joint Chiefs of Staff until 2019, “played a direct role in contributing to poor governance practices and ultimately led to current supply chain problems.”
The ISS justified its vote on Kane because “failures in governance, stewardship, and risk monitoring are believed to be ultimately responsible. This is related to poor working conditions. It has seriously harmed the company’s reputation and is paying in the company’s supply chain. Lester. “
Executive Pay has become the UK’s biggest flash point for AGM this year, with companies such as Informa, Rio Tinto and Cineworld having been hit by a major rebellion in recent months.
Globally, shareholders are also increasingly supporting environmental and social resolutions at this year’s annual shareholders meeting, including employee diversity and workplace conditions, against the backdrop of growing interest in sustainable investment. I will.
However, while advisers and some shareholders have criticized Kane, she and the Kamani family are unlikely to lose their vote due to the great ownership-together they dominate 28 percent of Bhufu. doing.
According to CapitalIQ, Boohoo’s largest independent shareholder, Jupiter, holds a little less than 10% stake and is also helping Kane re-election.
Boohoo recognizes that the Board has unanimously acted in developing a strong action plan and developing a rigorous change agenda with positive feedback in discussions with multiple institutional investors. That’s important. “
Boohoo’s steps to becoming a more ethical company Hire Brian LusonA judge who oversaw the investigation of the British telephone hacking scandal and oversaw the supply chain. It also associates certain bonuses with the progress of the problem.
CEO John Little, who is also aiming for reelection, told the Financial Times at the company’s annual meeting this Friday, “I’m really looking forward to voting with great confidence in Carroll’s reelection. I have. ”
Last year, Boohoo announced plans to pay Kamani and Kane up to £ 100m and other executives £ 50m. Both Glass Lewis and the ISS encourage shareholders to vote against the plan, the latter calling it “excessive.”
“Such potential awards far exceed those available on other UK-listed companies, and no explanation is provided in the annual report on how the Quantum was determined.” Said the ISS.
Boohoo directors to face shareholder revolt over supplier labour abuse Source link Boohoo directors to face shareholder revolt over supplier labour abuse