Card Factory has decided to keep its chair, Paul Moody, despite notable opposition.
- Over 20% of shareholders voted against Moody’s reappointment due to diversity issues.
- Women represent only 33% of the board, below the 40% recommended diversity target.
- After consultations with major shareholders, many continue to express disapproval.
- The company acknowledges the diversity shortfall but defends the current board’s capabilities.
Card Factory has reappointed its executive chair, Paul Moody, following a vote where more than 20% of shareholders opposed his reappointment. Concerns were raised over the company’s board diversity, a significant factor in the dissent. Moody has held his position since October 2018, but some shareholders question the diversity representation under his leadership.
The board of Card Factory comprises 33% women, falling short of the 40% diversity target advised under listing rules. This discrepancy has led some shareholders to vote against Moody’s reappointment. The company acknowledged that despite the skills and experience of the current board members, diversity remains a critical issue for a section of its investors.
Consultations were conducted with the company’s 12 largest institutional shareholders. Among these, only four expressed support for Moody’s continuation as chair, and little feedback or explanations were received from those opposed. This indicates a persistent concern among shareholders regarding the board’s diversity levels.
Despite these challenges, Card Factory has expressed its stance against recruiting additional board members solely to meet diversity targets. The board emphasised that their current composition aligns with the company’s operational needs and strategic goals, suggesting that the addition of a new director might not serve the shareholders’ best interests.
At the company’s annual general meeting in June, the lack of board diversity also prompted nearly a quarter of shareholders to vote against Moody. This illustrates the ongoing tension between shareholder expectations and the company’s current leadership decisions regarding diversity.
While Card Factory acknowledges the diversity concerns, it carries forward with its current board leadership, justifying it with operational alignment.
