Platform and wealth manager Hargreaves Lansdown is to consult with shareholders after a revolt against board re-elections saw over 30% vote against the re-election of chair Deanna Oppenheimer.
At the Bristol-based company’s AGM this week two directors, including Ms Oppenheimer, received significant votes against their re-election to the board.
A spokesman for HL told Financial Planning Today: “The board notes that resolution 6 (Re-election of D Oppenheimer) and resolution 13 (re-election of M Mannings) were passed with the necessary majority but with less than 80% of support. The board will consult with the specific shareholders who did not vote in favour to understand any concerns.”
The news comes after CEO Chris Hill this week announced he would be stepping down next year after six years in the role and news also emerged of a potential £100m law suit against the company over recommending a fund managed by failed investment manager Woodford.
In addition, in the Times today Hargreaves Lansdown founder Peter Hargreaves criticised Ms Oppenheimer for what he called the “diabolical” performance of the business in recent times.
HL’s share price has nearly halved this year from nearly 1400p at the start of the year to 755p today. The votes at the AGM have been seen as a sign of discontent among some shareholders.
The company will be seeking views shortly from shareholders on their concerns and to find out why many voted against the re-elections.
The AGM vote, carried out mostly before Mr Hill resigned, saw Ms Oppenheimer receive 33.53% of votes against a resolution to re-elect her. Non-executive director Moni Mannings saw a vote of 25.67% against her re-election.
Most other board directors were re-elected with only a small percentage of votes against although CEO Chris Hill had a vote of 6.83% against his re-election. There was also a vote of 6.93% against accepting the directors’ remuneration report.
Ms Oppenheimer is a former Tesco and AXA group director and joined the company’s board in 2018.
