SHARE OF THE WEEK: All eyes will be on the outcome of THG’s annual general meeting as the group faces shareholder rebellion over board member
All eyes will be on the outcome of THG’s troubled annual general meeting next week.
The e-commerce group is facing a shareholder revolt over one of its board members.
Investors will scrutinize the reappointment of a longtime non-executive director at the AGM on June 21, citing independence concerns.
They have been urged to vote against Iain McDonald’s re-election by two advisory groups, Institutional Shareholder Services (ISS) and Glass Lewis.
McDonald has served as a board member since 2010 and now sits on committees that oversee executive compensation, board recruitment and environmental sustainability.
ISS said he was ‘not considered independent’ as he has been on the board for 13 years with THG founders Matt Molding and John Gallemore.
McDonald is also the founder of investment advisor Belerion Capital, which was involved with asset manager King Street Capital in a failed bid for THG last year.
In its most recent annual report, THG said it “recognizes the need for an independent membership” of the remuneration committee, but “it would not be in the best interest of the company and its shareholders for Iain McDonald to step down.”
The owner of the websites Lookfantastic and Myprotein is no stranger to turbulence during a disastrous period on the London Stock Exchange.
The shares were trading at 500p in September 2020, valuing THG at £5.4bn, and peaking at almost 800p in early 2021.
But they changed hands last year for just over 30 pence.