The annual report of Domino’s Pizza Group Plc, the biggest pizza delivery company of the United Kingdom revealed that a succession planning to replace three senior board members, including Stephen Hemsley, its chairman, and David Wild, its chief executive officer, is being considered by the firm.
The changes come after the revised corporate code of the Financial Reporting Council that highlights the need for boards to refresh themselves, become diverse and properly plan for replacing top positions. It introduces a requirement for firms to publicly explain if a board chair has remained unchanged for over nine years.
The company is a franchise of Domino’s Pizza Inc. which is based in the United States of America. In its annual report that was released last week, it said that it was also looking at a succession plan for Helen Keays, its senior independent non-executive director.
Earlier today, Sky News reported that the executives are preparing to step down from their positions amid a deepening row with franchisees which has negatively affected the share price of the company.
In an email, a spokesperson for Domino’s stated: “As you would expect the Board has held internal discussions about succession planning for the chairman and CEO. We are not going to speculate on the outcome of any Board changes, and will update the market as and when there are any developments.”
Domino’s has also observed its profit affected by a slowdown in overseas markets. However, a source who has knowledge regarding the matter said that the planned changes were considered as part of “good governance.”
In a statement as part of the company’s report, Hemsley stated: “Whilst we acknowledge the Code’s provisions, the timing and sequencing of these Board changes must be appropriate for the business, and the Committee is currently formulating its plans.”
The new rules that were announced last January had provoked the departure of Mark Williamson, the non-executive Chairman of Imperial Brands, a tobacco company, last February.
Keays would have served nine years on the board of Domino’s by next year, while Hemsley was appointed as the executive chairman of the company in 2008, who became non-executive chairman in March 2010.
Meanwhile, Domino’s has extended the appointment of Hemsley as chairman by a year in order to facilitate orderly succession planning.
The shares of Domino’s closed by 3.3 percent higher at 241.1 pence today.