Next defends chair following shareholder rebellion

Next has defended its chair, Michael Roney, after more than 20% of shareholders voted against his re-election at the company’s AGM earlier this year. 

Back in May, 20.84% of voting shareholders chose to not support his re-election as a director of the company. 

Under the 2018 UK Corporate Governance Code, Next then engaged in a consultation process with these shareholders to “gain an understanding” of their reasons for voting against the measure.

According to Next, it found that votes against his re-election were primarily due to him being “considered as overboarded” as well as a secondary concern over the gender make up of the board.

In a statement defending Roney, the company said: “The board accepts that some investors apply a stricter voting policy than the market generally in relation to chair and directorship roles on the boards of listed companies.  

“Mr. Roney provides more than enough time to his role as chair and effectively discharges the functions and obligations of the role. He has attended all board and committee meetings held in the past three years. He is always available when required as was evident in the group’s response to the pandemic and his involvement in the major strategic decisions made by the board in recent years.” 

It added that Roney “brings significant experience to his role”, provides “clear direction and leadership to the board”, and that his continuing appointment is a benefit for all shareholders.

The company also said it would “take appropriate action in the event of any concerns being raised about the ability of any director, including the chair, to dedicate sufficient time to their roles”.