Unrest over Schroders' decision to appoint ex-CEO as
chairman
In March, Schroders plc, the FTSE 100 asset management firm,
caused consternation in corporate governance circles when it
announced that Chief Executive Michael Dobson would relinquish his
post but stay on as Chairman.
Initial reaction to speculation that Mr Dobson would relinquish
his role as CEO after 14 years indicated that this was a sensible
and measured change. He is, after all, 63 years old and it was
reportedly an open secret among investors that Peter Harrison, his
successor, was regarded as heir apparent – and there was
concern that he would get restless and move on if he did not get
the top job soon.
Once the announcement was made that Mr Dobson would become
Chairman – a move said to 'flout' UK corporate
governance guidelines − Glass Lewis, the Institute of
Directors, the Investment Association, ISS, PIRC and various
unnamed investors all queued up to criticise the proposal.
