Card Factory reappoints Paul Moody as chair despite diversity issues raised by shareholders.
- Over 20% of votes opposed Moody’s reappointment at the additional shareholder consultation.
- Card Factory’s board comprises 33% women, falling short of the 40% recommended.
- Consultations with primary shareholders revealed four in support of Moody, with no feedback from opponents.
- Board believes its current skills and experience are aligned with strategic objectives; diversity recruitment not a priority.
Despite a notable portion of shareholders expressing dissent, Card Factory proceeded to reappoint Paul Moody as the executive chair. This decision followed a shareholder consultation prompted by the company’s annual general meeting, highlighting concerns regarding the board’s diversity. Paul Moody, initially appointed in October 2018, has faced scrutiny over diversity ratios, with women comprising 33% of the board against a recommended 40%.
At the recent shareholder consultation, more than 20% of votes were cast against Moody’s return. This meeting engaged the 12 largest institutional shareholders, four of whom supported his reappointment. However, those opposing offered neither direct engagement nor explanation, suggesting a divide in opinion around leadership amidst the diversity discourse.
The board acknowledged prior feedback regarding diversity concerns. It reaffirmed its stance, indicating the skills and experience within the board are suitable for achieving the company’s operations and strategic goals. Moreover, the board does not deem it necessary to appoint an additional director purely for meeting diversity benchmarks, considering it potentially misaligned with shareholder interests.
Amidst the shareholder backlash witnessed in June, Card Factory pledged to keep lines of communication open with its stakeholders to address these concerns. Notwithstanding this promise, the decision to retain Moody underscores an implicit prioritisation of continuity and presumed stability over immediate diversification.
Card Factory’s decision to reappoint Paul Moody illustrates a tension between shareholder diversity expectations and board priorities.
