Shareholders have thrown their weight behind the founder and chairman of Wetherspoon (J.D.) (JDW) despite a furious row over corporate governance. Ahead of Thursday’s annual shareholder meeting, the influential proxy voting agencies that advise big shareholders how to vote had raised a number of red flags. Tim Martin has been the executive chairman since 1983, in contravention of guidelines that recommend having a non-executive chairman operating above a chief executive. The advisory groups also criticised executive pay and Martin’s use of company money to buy pro-Brexit beermats. In the end Martin received an overwhelming endorsement, with 98% of voting shareholders backing him. However, a fifth of independent shareholders voted against Debra van Gene and Sir Richard Beckett, who have been on the board since 2006 and 2009. Both executives, who have already agreed to step down, still polled 88% due to the support of Martin, who is the company’s biggest shareholder.
Royal Mail (RMG) has said strike action could tip its UK operation to a loss next year as it falls behind on plans to transform the business in the face of a faster than expected drop in letter volumes. The warning sent Royal Mail’s share price tumbling 14%, wiping about £320m from its stock market value, despite the company reporting its best revenue performance in the UK for five years and a significant increase on profits for the half-year to the end of September. Royal Mail used its results to tell the Communications Workers Union that potential strike action in the run-up to the general election and key Christmas period would seriously damage the business.
