Debenhams faces setback as shareholder Frasers obstructs three resolutions at the Annual General Meeting
In a closely contested annual general meeting (AGM), Debenhams' payment packages for its bosses were approved by a majority of votes, despite significant opposition from the Frasers Group.
The vote on the payment packages needed a majority to pass and did so, with 56.5% of votes in favour. This decision comes amidst an ongoing disagreement between Debenhams and Frasers Group, the online retail firm that owns an almost 29% stake in Debenhams.
The Frasers Group led the opposition at the AGM, focusing on the vote for the payment packages for Debenhams' bosses. The meeting also saw a heavy vote against resolutions 11, 12, and 13, which did not pass due to votes from Frasers.
The blocked votes at the AGM included the "disapplication of pre-emption rights" and the ability of the company to purchase more of its own shares. However, Debenhams' board of directors stated that these special resolutions, though not passed, are not expected to have a significant impact on the company's future.
The sale of Debenhams' PrettyLittleThing brand is part of the company's ongoing turnaround strategy. The company was recently renamed from Boohoo, reflecting its focus on delivering the group's turnaround strategy.
Despite the controversy surrounding the payment packages, Dan Finley, the CEO of Debenhams who led the successful proposal for his remuneration, remains focused on delivering the group's strategy. The board also characterized the resolutions as "customary" and in the best interests of all shareholders.
The share value of Debenhams has dropped by more than half over the past year, reflecting the challenges the retail industry is facing. Frasers voted against a raft of resolutions at the AGM as a signal of its frustrations regarding the performance of the business.
The increasing bitterness of the row between Debenhams and Frasers Group is a concern for many in the retail industry. Both parties will need to find a resolution to their disagreements if they are to move forward and tackle the challenges facing the industry.
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