Stephen Tindall, at 60, is younger than other directors. Photo / Natalie Slade
Stephen Tindall, at 60, is younger than other directors. Photo / Natalie Slade
Investors questioned the effectiveness of The Warehouse's ageing board of directors during the retailer's annual meeting in Auckland yesterday.
New Zealand Shareholders' Association corporate liaison Des Hunt said the company needed "new blood" on its six-member board, which has an average age of 62.
Founder Sir Stephen Tindall is 60,while chairman Graham Evans is 72 and independent director Ted van Arkel, who was elected yesterday, is 68.
When the floor was opened for questions around the re-election of deputy chairman Keith Smith, 59, Hunt said he supported his reinstatement but would like him to consider stepping down before the end of his term if new talent became available.
In reply, Smith said he was committed to serving his full term, but his history with other companies showed he had "not been shy of stepping down" from boards when there was a more skilled person that could replace him.
Smith was re-elected yesterday, while independent director Robert Challinor, 69, retired.
A $100,000 increase in the directors' fee pool to $750,000 was approved by shareholders.
Evans, the chairman, said there were several vacancies on The Warehouse's board and the company was actively looking for people who could "add value" as directors.
"Succession planning is a critical part of our responsibility to you as shareholders," he said. "It's not a job of the old boys network - those days are well and truly passed."
Chief executive Mark Powell said the company was optimistic about how the crucial Christmas trading period would pan out. However, the retail market remained challenging.
The Warehouse expects adjusted net profit for its financial year to be $70 million, which would be an almost 8 per cent decrease. Shares closed down 3c yesterday at $3.17.
