Experian investors hit out at credit-checker over board plans

16th Jul 2014 14:58

Shareholders in Experian gave the credit-checking company's board a bloody nose on Wednesday over controversial plans to appoint its Chief Executive as Chairman.Holders of almost a third of shares in Experian failed to back Don Robert's re-election as a director, effectively confirming his appointment as the group's Chairman, figures showed after Tuesday's annual shareholders' meeting.Shareholders cast about 11% of votes against the move while about a fifth abstained.Experian's plan to replace John Peace as Chairman breaches UK corporate governance rules stating chief executives should not become chairmen of the same company.Investment industry body the Investment Management Association and the Institute of Directors industry lobby group raised concerns.Experian claimed it did not want to lose Peace, who founded the business 40 years ago, and Roberts, who has been Chief Executive since it was de-merged from catalogue group GUS and floated in 2006, together.It said in a statement following the annual meeting: "The board places enormous value on Don remaining with the business, particularly given the retirement of founder Sir John Peace. "We endeavour to listen carefully to our shareholders and are always happy to engage with any investors on this or any other resolution put to today's meeting." Also at the meeting, holders of 14% of the shares opposed directors' pay packages, with Robert earning about £45m in the last five years, according to Experian's annual report.As well as Experian, Peace has been involved in shareholder controversies this year at luxury goods retailer Burberry and emerging markets bank Standard Chartered.Shareholders at Burberry, which he chairs, rebelled against a multi-million pound package for Chief Executive Christopher Bailey, while more than 40% of investors at Standard Chartered, where Peace is also chairman, opposed the bank's new pay regime. PW