THG has defended a non-executive director after his re-election was opposed by a quarter of shareholders at its annual general meeting during the summer.
Iain McDonald will remain in his position on the board following a review in response to the vote from investors in June.
McDonald, who joined THG’s board in 2010, stepped down from his post as head of the group’s remuneration committee on the morning of the AGM, with 24% of shareholders then voting against his re-election as a director.
It is understood investors were concerned about his level of independence due to his length of tenure on the group’s board.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Following a review, THG said McDonald was a “valuable member of the board” and will remain as a director.
It said: “While the board was disappointed with the outcome of this vote, it takes seriously its responsibilities to represent the interests of shareholders and to uphold the highest standards of corporate governance and, as stated at the time, is open to constructive dialogue with shareholders and shareholder bodies.
“Iain is regarded as a valuable member of the board and, possessing extensive financial and remuneration expertise and investment acumen, brings a wealth of experience to its overall skill-sets and knowledge base.”
THG has also faced pressure from its shareholders to de-merge the group’s three divisions – a beauty business, a nutrition arm and ecommerce services platform, Ingenuity.
Activist investor Kelso argues the move would help to address “the inherent disparity between THG’s share price and true value” as the group’s plummeting share price now values the business around a fifth of its £5bn IPO valuation.
Click here to sign up to Retail Gazette‘s free daily email newsletter
