Luxury shoemaker Jimmy Choo faces a possible shareholder rebellion tomorrow as investors decide on whether the chairman is fit to stay in his role.
Shareholder advisory groups Pensions & Investment Research Consultants (Pirc) and Institutional Shareholder Services (ISS) have both told shareholders not to back the re-election of Jimmy Choo's chairman Peter Harf at the company's annual general meeting tomorrow.
In a note to shareholders seen by City A.M., Pirc said investors should oppose Harf's re-election because he also chairs JAB Luxury, which is a controlling shareholder at Jimmy Choo, and he is therefore not considered independent. JAB Luxury owns 68 per cent of Jimmy Choo's issued share capital.
The advisory group also said the election of three non-executive directors, Fabio Fusco, Olivier Goudet and Anna-Lena Kamenetzky, should be opposed because they were all appointed to the board by JAB Luxury.
The ISS note to shareholders said: "The board chairman who was not independent on appointment (being a shareholder nominee) chairs the joint remuneration and nomination committee.
"A chairman may sit on the remuneration committee only if he or she was independent on appointment, but, in any case, should not chair the committee."
Jimmy Choo has previously said that Harf's position on the committee was not permanent, but he has now been in post for two years. ISS said shareholders should therefore abstain from the vote on Harf's re-election.
Jimmy Choo did not respond to a request for comment.