Investors at the annual meeting of James Hardie in Dublin expressed their discontent by voting against the re-election of chairwoman Anne Lloyd and two other board members following a tumultuous period for the company. This unprecedented reaction stemmed from dissatisfaction with the board’s handling of the $14 billion acquisition of US group Azek and concerns over the perceived subversion of investor rights.
During the meeting, which took place on October 26, 2023, documents revealed that over 67 percent of proxy votes were directed against Lloyd’s re-election. The final vote, which will include those cast during the meeting, will be announced after the proceedings conclude. Lloyd acknowledged the gravity of the situation, stating, “It appears that Rada Rodriguez, PJ Davis and I have not secured sufficient support to be re-elected, and if this position remains on final tabulation, we will each retire automatically at the conclusion of the AGM.”
Both Rodriguez and Davis faced significant opposition as well, with more than 52 percent and 60 percent of proxy votes against them, respectively. The meeting itself was brief, lasting only 17 minutes, and ended with the company defending its decisions without offering apologies to investors for its actions.
Despite the backlash, Lloyd maintained that she and her colleagues had acted in the best interests of all stakeholders, asserting, “We have always acted in the long-term interest of all James Hardie stakeholders, shareholders, employees and customers alike.”
Looking ahead, Lloyd did not specify her successor but noted that surviving directors would consider shareholder input carefully as they reviewed the board’s composition and governance structure. “Looking ahead, we are focused on taking the right steps to drive shareholder value,” she added. “At the same time, we recognise that we have more work to do to deliver on our promise to shareholders.”
Meanwhile, Aaron Erter, the company’s chief executive, emphasized the importance of shareholder perspectives in documents released prior to the annual meeting. “We have engaged extensively with many of you during the past several months and deeply appreciate all the feedback that we have heard,” Erter stated.
The aftermath of this meeting raises questions about the future leadership of James Hardie and its strategies in the wake of the contentious acquisition. Investors will be keenly watching how the remaining board members respond to the expressed discontent and whether they will implement necessary changes to restore confidence in the company’s governance.
