Premier Inn owner Whitbread has defeated an attempt by activist investor Corvex Management to secure a seat on its board, after shareholders voted against the proposal at a general meeting on Monday.
Corvex Management, a New York-based investment firm with a 6.4% shareholding in Whitbread, had proposed appointing its partner James Gemmel as a director. The firm argued that the hospitality business had been underperforming compared with its peers and the wider market, and wanted Mr Gemmel to bring a “fresh perspective” on the company's strategy and its plans to deliver returns to shareholders.
Corvex assured shareholders that it was not seeking control of Whitbread or demanding that the company be sold.
Shareholders vote against resolution
Excluding votes cast by Corvex shareholders, 91% of votes were cast against the resolution, striking down the proposal.
Whitbread’s chairwoman Christine Hodgson said the “overwhelming majority of shareholders have voted decisively to back the board and our strategy”.
“We will now continue to focus on delivering our five-year plan, which has clear and measurable milestones to drive significant value for shareholders, and which we are already executing at pace,” she said.
Company's five-year plan
The company’s five-year plan involves making £250 million of cost savings and cutting capital expenditure by more than £1 billion. Whitbread also announced plans to cut around 3,800 jobs earlier this year as part of the overhaul.
