Card Factory has reappointed its executive chair Paul Moody, despite votes cast against his reappointment over a lack of diversity within its board.

The vote, which took place at the retailer’s additional shareholder consultation, following its AGM held on 20 June, sought consultations with the company’s 12 largest institutional shareholders.

Card Factory said 20% of shareholders voted against the reappointment of Moody, who was appointed as chairman of Card Factory back in October 2018, having previously served as chief executive of Britvic.

“The board understands, from prior shareholder feedback, that the diversity of the board may result in votes against the chair’s reappointment,” Card Factory said on Monday (16 December).

Women made up 33% of the card specialist’s board, it added, below the 40% recommended under listing rules.

It said its 12 largest shareholders had been consulted since the meeting, with four having supported Moody’s reappointment but “no engagement or explanation” being received from those against.

“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,” Card Factory added.

“The board recognise the diversity of its membership, across a range of criteria and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the […] recommendation.”

In June, the cards specialist was hit with a backlash from shareholders at its annual general meeting.

Card Factory said it would engage with its shareholders over their concerns after almost a quarter voted to oust its chair.

Retail Gazette understands that Moody retained the confidence of the company’s shareholders and that the votes cast were not a reflection of his performance as chair.

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