THG has defended its decision to retain Non-Executive Director Iain McDonald despite shareholder opposition.
McDonald will remain on the British retail group’s board despite his re-election being opposed by almost a quarter of investors.
At THG’s annual general meeting (AGM) in June 2023, McDonald stepped down from the group’s remuneration committee.
Around 24% of shareholders then voted against his re-election as a Director, however, the company formerly known as The Hut Group backed McDonald.
THG has defended its decision, stating McDonald is a “valuable member” of the board with more than 13 years experience.
“While the board was disappointed with the outcome of this vote, it takes seriously its responsibilities to represent the interests of shareholders,” read THG’s statement.
“And to uphold the highest standards of corporate governance and, as stated at the time, is open to constructive dialogue with shareholders and shareholder bodies.
“Iain is regarded as a valuable member of the board and, possessing extensive financial and remuneration expertise and investment acumen, brings a wealth of experience to its overall skill sets and knowledge base.”
McDonald also serves as a Non-Executive Director at Boohoo Group.
THG has also faced pressure from activist shareholder Kelso to confirm the break-up plans for its beauty empire.
The group has allegedly requested a stock market statement which outlines THG’s proposals for a demerger of its three business divisions.
THG operates a beauty business, which contains online retailers Lookfantastic and Cult Beauty; subscription service Glossybox; make-up company Illamasqua and spa brand Espa.
It also runs a nutrition business and ecommerce services platform Ingenuity, which is the retail group’s tech arm.
Read more:
- THG strikes deal with L’Oréal to manage two US brands
- Can The Body Shop’s new campaign and brand purpose save it in 2024?
- THG revenues improve as beauty bolsters Q3 sales
- Selfridges co-owner Central Group eyes up Signa’s stake amid crisis
- Shiseido acquires Dr. Dennis Gross to strengthen skin care portfolio
