Turning 79 this year, and serving as a director on the board of Pick n Pay since 1976, Hugh Herman in our view has overstayed his welcome by at least 25 years.
It beggars belief that the Pick n Pay board can still consider Hugh to be independent, and even elect him as a lead independent director! This runs counter to several governance principles per King IV and makes a mockery of the board’s statement that “it had fulfilled its responsibilities in accordance with its Corporate Governance Charter, King IV …”
The 2018 UK Corp. Gov. Code for instance impairs the independence of directorships after 9 years (clause 10).
At the 2018 AGM Hugh polled the lowest support by a fair mile of all directors then standing for re-election.
Had we owned shares in Pick n Pay, we would have voted against his re-election at the upcoming AGM.
It is time the shareholders vote him off and refresh the board with younger people with new ideas.