Card Factory has announced it will not appoint another female director to meet diversity targets, despite previously pledging to achieve 40 per cent female board representation by December 2024.
The Wakefield-based retailer said it “does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the 40 per cent recommendation”.
The company’s decision marks a reversal from its earlier commitment made in this year’s annual report, where reaching the recommended minimum level for female representation on listed company boards was described as a “specific objective”.
Currently, the company’s six-person board includes two women, representing one-third of its membership.
Currently, the company’s six-person board includes two women
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This falls below the Financial Conduct Authority’s recommended 40 per cent minimum level for female representation on the boards of listed companies.
The two female directors are Pamela Powell, who joined as senior non-executive director in June, and existing director Indira Thambiah.
Their appointments came after Card Factory started the year with just one woman among seven board members, followed by two male directors stepping down over the summer.
The announcement follows chairman Paul Moody surviving a challenge to his leadership over board diversity concerns at the company’s AGM in June.
Twenty-five per cent of shareholders voted against Moody’s reappointment, prompting the board to seek consultations with its 12 largest institutional shareholders.
Only four shareholders engaged in the consultation process, but all of them expressed support for Moody, who has served as non-executive chairman since October 2018.
The shareholders who opposed Moody’s reappointment had raised concerns about the board’s composition failing to meet diversity targets set by the Financial Conduct Authority.
In a new statement, Card Factory addressed its board composition, saying it had “recently re-assessed the skills and experience of its members and consider this to be appropriate for the company’s operations and strategic objectives”.
Twenty-five per cent of shareholders voted against Moody’s reappointment
Card Factory
The board acknowledged diversity considerations but maintained its position against further appointments.
“The board recognise the diversity of its membership and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the 40 per cent recommendation”, the company said.
Card Factory added that it would “keep all aspects of experience and diversity under review”.
Responding to the decision, former Tory MP Dame Andrea Jenkyns said: “Well done to the Card Factory for refusing to hire people purely to hit their diversity targets.”
Jenkyns, who was recently unveiled as another Tory defector to Reform UK, added: “We should be a meritocracy and hire the best people for the job.”
