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Glass Lewis recommends Boohoo investors vote against co-founder at AGM

By Reuters

LONDON – Proxy adviser Glass Lewis said it recommends investors vote against the election of Boohoo Group co-founder and executive director Carol Kane at the company’s annual meeting in the wake of a recent supply chain scandal.

The decision, which follows allegations of modern slavery and poor working conditions on the company’s factories, comes despite an independent review that led to a planned overhaul of the company’s operations.

“Nonetheless, it is unclear what the ultimate impact of these initiatives will be in mitigating the risk of similar issues in the future,” Glass Lewis said in a ‘controversy alert’ ahead of the company’s June 18 AGM.

“Further, we remain concerned with the independent review’s finding that the board was aware of issues in the Leicester factories in 2019 and failed to take adequate action prior to this issue emerging in the media in mid-2020.”