Mitchell & Butlers gets warning over directors

PUB GROUP Mitchell & Butlers has been issued a “red top” warning by the Association of British Insurers (ABI), due to concerns stemming from the British company’s position as the only FTSE 350 firm without any independent non-executive directors.

ABI’s highest-level alert comes days before Mitchell & Butlers’ general meeting, scheduled for next Thursday, when shareholders are expected to grumble about the pub group’s board which has seated just five directors since July, two of whom represent the company’s largest shareholder, Joe Lewis, who owns a 25.6 per cent stake.

Corporate governance consultancy PIRC has advised shareholders not to re-elect these two directors.

ABI has also marked Cairn Energy with a “red top” on its plans to award £2.5m to chairman Sir Bill Gammell.