Custodian REIT promises to boost board diversity

Custodian REIT has said it will strive to bring more diversity to its board after an annual general meeting at which shareholders pushed back against the re-election of two directors. Close to a quarter of votes cast at the AGM were against the re-election of independent chairman David Hunter (pictured) and director Ian Mattioli. The company said that, based on contact from proxy voting agencies, those were linked to Hunter’s role as chair of the nominations committee and Mattioli’s lack of independence as a director. Mattioli is also chief executive of Mattioli Woods, the parent company of Custodian REIT’s investment manager. Custodian said in response to the AGM votes that Mattioli plays no part in setting the fees the company pays to its investment manager and that his “experience and perspective representing one of its substantial shareholders adds significant value”. The REIT noted that with a 22% turnout for the AGM, the votes against the re-election of Hunter and Mattioli accounted for 5% of all shareholders, despite being a quarter of AGM votes. Following the AGM, Custodian also outlined plans to increase gender diversity on its board. The board has just one woman – Hazel Adam, a former equities trader who worked at HSBC and Goldman Sachs – giving it a female representation of 20%. “The board recognises the value and importance of diversity in the boardroom, and steps are already being taken to increase female representation on the board through delivery of the company’s succession plan,” Custodian said, adding that it will set out details of that plan in its interim results. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette