Some of British private equity firm 3i Group’s top investors are planning to vote against the re-election of the company’s Chief Executive Michael Queen, Reuters reported, citing the Sunday Times. 3i shareholders including Schroders, BlackRock and Scottish Widows Investment Partnership “are planning to abstain or vote against Queen’s re-election, after they said he had rejected demands to return cash to shareholders,” Reuters wrote.
(Reuters) – Several top investors in British private equity firm 3i Group are planning to vote against re-electing the company’s Chief Executive Michael Queen, the Sunday Times reported.
The British newspaper said 3i shareholders including Schroders, BlackRock and Scottish Widows Investment Partnership were planning to abstain or vote against Queen’s re-election, after they said he had rejected demands to return cash to shareholders, according to market sources.
A 3i spokesman on Sunday said the board had not made any decision on returning cash to shareholders.
“3i has a strong financial position and has a range of potential uses for capital. We are always interested in the views of our shareholders, and these are taken into account whenever the board is deciding what to do with its capital.”
The Sunday Times said Queen had decided against launching a share buyback scheme to help its stock price, in favour of investing in new funds in India and China.
It added that a protest vote against Queen’s proposed new pay deal and the targets attached to his bonus plan was also expected, although it was not expected to be large enough to force him out.
3i will hold its AGM on Wednesday.
(Reporting by Neil Maidment; Editing by Will Waterman)