UK - Media company Granada is to face shareholder dissent after the NAPF recommended abstentions in the re-election of two of its directors.
Charles Allen and Graham Parrott both have two-year rolling contracts both of which NAPF’s voting issues service said were a cause for concern.
Corporate governance experts have consistently criticised companies whose directors hold contracts of more than one year, because it can mean costly payouts should the company terminate their employment.
Granada has been subject to numerous corporate governance campaigns in the past. In September last year, shareholders called on the company to restructure its board on the departure of chief executive Steve Morrison. The company has operated with an executive chairman and no chief-executive since Morrison’s departure.
The company is also currently awaiting a response from the Office of Fair Trading on a proposed merger with Carlton Communication.
If the merger does not go ahead, the NAPF wants Granada to split the role of chairman and chief executive.
Granada was praised by the NAPF for offering its remuneration report to a shareholder vote, even though the firm was not legally obliged to do so.
*Granada’s AGM is arranged for March 19.
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