Card Factory reappoints Paul Moody as chair despite diversity concerns

Card Factory has reappointed Paul Moody as its chair despite concerns from shareholders regarding the board’s diversity. At the company’s AGM in June, more than 20% of shareholders voted against a resolution to reappoint Moody as chair. 

Since the meeting, the company said it consulted with 12 of its largest shareholders, four of whom supported the reappointment of Moody.  

According to Card Factory, “no engagement or explanation” was received from shareholders who voted against his reappointment, however.

In a statement this week, Card Factory said that following shareholder feedback, it understood the diversity of the board “may result in votes against the chair’s reappointment”, and added that the “diversity of the board fell short of the recommendations in the listing rules”. 

Its board now comprises 33% women, falling short of the recommended 40%. 

Card Factory said: “The board has recently re-assessed the skills and experience of its members and consider this to be appropriate for the company’s operations and strategic objectives. The board recognises the diversity of its membership, across a range of criteria (of which gender and ethnicity are part) and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the 40% recommendation. The board will keep all aspects of experience and diversity under review.”