James Hardie’s chairwoman, Anne Lloyd, is facing a potential ousting by disgruntled investors at the company’s upcoming annual meeting next month, analysts caution. The uncertainty surrounding the event is anticipated to inject added volatility into the stock’s performance. James Hardie is a global building materials company, known primarily for fibre cement products and systems used in exterior and interior construction applications. It focuses on manufacturing and selling building materials.
Lloyd, who assumed the role of chairwoman in late 2022, oversaw the widely criticised $14 billion acquisition of Azek, an outdoor decking company. She is among the three James Hardie directors scheduled for re-election at the annual meeting slated for October 30. Investor concern regarding the Azek acquisition is at the forefront of the upcoming vote.
Citi analyst Samuel Seow refrained from speculating on the potential outcome of the annual meeting vote. However, he did raise the possibility of the company needing to appoint a new chair if investor discontent translates into a significant protest vote. This uncertainty adds a layer of risk for the building materials giant.
Seow noted, “While normally these are largely non-events, we note an ever-increasing chance of volatility, given the first quarter result and recent investor concerns around governance.” The market will be watching the annual meeting closely.
