Influential proxy advisor CGI Glass Lewis is recommending that James Hardie shareholders vote against the re-election of chairwoman Anne Lloyd at the upcoming annual general meeting. The recommendation extends to several other directors as well, as Glass Lewis calls for a board reset to restore investor confidence in the company’s leadership and strategic direction.
James Hardie, a global building materials company focusing on fibre cement products, has faced increasing scrutiny following its controversial $14 billion acquisition of outdoor decking group Azek. The proxy advisor asserts that this deal has eroded trust among many of the company’s investors. Along with the Azek acquisition, the company is grappling with a significantly weakened profit outlook.
The combination of investor concerns and a less optimistic financial forecast has resulted in a substantial decline in James Hardie’s market capitalisation. Over the past six months, the company has seen approximately $8 billion wiped off its sharemarket value, reflecting the growing unease among shareholders.
The upcoming AGM will be a critical juncture for James Hardie as investors weigh the recommendations from Glass Lewis and consider the future composition of the board. The decisions made at the meeting will likely play a significant role in shaping the company’s path forward and its efforts to regain the confidence of the investment community.
