Wetherspoon boss Tim Martin launches attack on City regulators
JD Wetherspoon boss Tim Martin lashed out at proxy advisor Pirc this morning, branding the firm’s recommendations to shareholders unhelpful to “business and the country”.
In a wide-ranging attack on corporate governance, Martin slammed Pirc’s advice as “toxic” and called major Wetherspoon shareholders Columbia Threadneedle and Blackrock “hypocrites”.
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The US investment giants voted against the re-election of long-serving directors at Wetherspoon’s annual general meeting last year, but have directors on their own boards with tenures longer than the recommended nine years, Martin said.
Blackrock declined to comment, while Columbia Threadneedle did not respond to requests for comment.
Martin told City A.M :“I think Pirc gives particularly toxic advice, not only does it advise voting against our non-executive directors, but also that I shouldn’t be on the board because I’ve been there for more than nine years.
“I was there for more than nine years in 1992…it doesn’t make sense in my view.”
“In summary, my view is the UK corporate system is up the spout – and is itself a threat to listed companies – and therefore to the UK economy,” Martin said in a Wetherspoon trading statement this morning.
“But, perhaps above all, no sensible business, looking to the long term and genuinely apprised of the reality of the corporate governance system, would float on the London stock market today – who wants to guarantee eventual destruction, after all?” he added.
In the trading update the company also announced that like-for-like sales increased 5.3 per cent in the 13 weeks to 27 October.
The pub chain boss, a vocal supporter of a no-deal Brexit, also said Pirc’s stance on his Vote Leave campaign spending during the 2016 referendum was “total bollocks”.
The adviser has recommended shareholders oppose Wetherspoon’s financial statements at its upcoming AGM over Martin’s pro-Brexit.
Pirc said in response: “We genuinely find what Tim Martin has to say about corporate governance worth listening to – personal attacks aside.
“You can’t work in this field for as long as we have without recognising some of the limitations of the ways of looking at companies through a governance framework.
Read more: Wetherspoon boss Tim Martin slams ‘elite remainers’ as profit sinks
“And criticisms of our approach obviously have more weight when they come from those who have created successful businesses that continue to do well.”
It added: “Where we are going to disagree is on the issue of political spending.”
Main image credit: Getty