Shareholders of the Super Retail Group, the parent company of Rebel Sport, Super Cheap Auto, BCF, and Macpac, are poised to demand accountability at the upcoming annual meeting scheduled for March 2024. This follows a tumultuous month for the company, which culminated in a costly settlement related to a secret relationship involving its former chief executive, Anthony Heraghty, and ex-HR director, Jane Kelly.
Last month, Super Retail was compelled to resolve a bitter legal dispute with two former lawyers, Rebecca Farrell and Amelia Berczelly. This settlement, reported to be less than $30 million, came shortly after revelations from Heraghty that jeopardized the company’s legal stance. The legal battle was ignited by allegations related to the secret relationship and potential violations of the Corporations Act.
In addition to the settlement costs, Super Retail has incurred legal expenses exceeding $10 million. It remains unclear whether the company is responsible for covering any legal fees incurred by Farrell and Berczelly. As shareholders prepare for the meeting, they are likely to expect transparency and accountability from the board.
Proxy Advisers Recommend Against Chair’s Re-election
The board’s management of the situation has drawn criticism from proxy advisory firms. The Australian Shareholders Association, along with Institutional Shareholder Services (ISS) and the Australian Council of Superannuation Investors, have recommended that shareholders vote against the re-election of current chair Judith Swales. These firms have raised concerns about the board’s decision-making, particularly regarding the handling of the whistleblower litigation and Heraghty’s termination.
Rachel Waterhouse, chief executive of the Australian Shareholders Association, emphasized the need for governance accountability. “Leadership in crisis is a test of governance judgment. The board’s handling of the whistleblower litigation and CEO termination did not meet shareholder expectations for accountability or transparency,” she stated.
Despite the mounting pressure, Super Retail’s board seems reluctant to take responsibility for its actions. Recent statements indicate that the board may not be prepared to acknowledge its missteps fully. This attitude could further intensify shareholder demands for clarity and accountability during the upcoming meeting.
With an atmosphere of tension and expectation, stakeholders will be watching closely as Super Retail Group navigates this challenging period. The decisions made at the annual meeting could have significant implications for the company’s future direction and leadership.
