THG braces for shareholder riot over new CFO's 'unjustified' salary

THG founder Matthew Molding says London public company experience is 'unpleasant'

Former British tech leader THG faces shareholder uprising at meeting with investors that could heighten CEO Matthew Molding's dislike of the London market.

THG, the online retailer for brands such as Lookfantastic and Glossybox, risks a bloody nose at its annual general meeting (AGM) later this month after influential shareholder advisory company Glass Lewis advised investors to reject two proposals that are being voted on.

Investors are being urged to reject THG's payroll due to an increase in the salary of its new chief financial officer.

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Damian Sanders will earn £500,000 a year, 11% more than his predecessor John Gallemore.

Glass Lewis said there was no «convincing rationale» for the increase, which is occurring despite steep losses and a declining share price.

The Investment Advisory Panel also urged investors to vote against Ian's re-election. McDonald, a proposal she made last year.

Glass Lewis claimed it was because he was «an affiliate or insider» on the pay committee. Mr. McDonald is a non-executive director at both THG and Boohoo, and is the founder of Belerion Capital, which unveiled its takeover approach for THG last year.

A call for a vote against THG management risks exacerbating Mr. -on Molding to the London investment environment.

Mr Molding, who also founded the company, has been highly critical of the London stock market since THG debuted in September 2020. He called the listing a «mistake» that «just sucks from start to finish.»

The company's valuation has dropped from around £6.5bn in September 2020 to £813m now.< /p>< p>The drop coincided with a broader decline in tech stocks in 2022 and is linked to rising THG losses.

Analysts also raised concerns about the company's management, which Mr. Molding was trying to resolve with a series of concessions, including giving up the «golden share» in the business.

Mr. Molding said bankers, analysts and hedge funds are conspiring against his company, and said the experience of a public company in London is «unpleasant». .

He signaled he was willing to take the company private, and last month argued that THG would be worth «billions more if it didn't manipulate the market on a daily basis.»

The upcoming AGM will take place a few weeks after THG's withdrawal. takeover bid from private equity firm Apollo. Mr. Molding accused Apollo of trying to capitalize on the «extremely low share price of the online retailer.»

THG spokesman said of Glass Lewis's recommendation: «Charles Allen joined the board as an independent non-executive chairman in March 2022 with a clear mandate to improve governance, transparency, and strengthen and renew the board of directors by increasing its independence and diversity.

“Since then, the board of directors has appointed three new independent NED members: Gillian Kent, Dean Moore. and Sue Farr as Senior Independent Non-Executive Director with a commitment to further appointments in accordance with the principles of good corporate governance.”

Mr Sanders replaced Mr. Gallemore as Chief Financial Officer earlier this year, and Mr. Gallemore becomes COO.