R&Q rebels face off against CEO Spiegel in Sept. 13 leadership battle
Rival factions will face off September 13 to decide the battle for control of Randall & Quilter Insurance Holdings (R&Q), voting a resolution from select disgruntled shareholders to oust CEO William Spiegel and reinstate former leader and group co-founder Ken Randall.
R&Q's board of directors, presumably including co-founder Alan Quilter, came out unequivocally in defence of their group's current CEO and strategy with a strong recommendation to shareholders.
“William and his management team have the Board's unanimous and unequivocal support,” the board of directors said, with caveat for Speigel's abstention.
The proposed leadership upheaval “would undermine the improvements the current leadership team have made," could have a "negative impact” on governance, raise “significant retention and recruitment concerns,” and shake the underpinnings of the group's financing and ratings, the board claimed.
Phoenix Asset Management initiated the battle and was quick to draw estranged R&Q partner Brickell and related parties to its side. Together, the two control some 35% of equity.
But Spiegel and team have not taken the attack sitting down and have managed to garner public statements of support from four major shareholders - Slater, Abrdn, Vida and J O Hambro - controlling some 32% with added declaration that one more unspecified major name has joined their side of the barricades.
The board of directors lambasted Phoenix for what it called a stand-offish approach to the matter, saying repeat attempts to reach out.
“No sound justification has, in the Board's view, been provided by Phoenix,” the board said, leaving open-ended questions about the group's further governance and strategic plans.
Phoenix might differ on that point. Phoenix's open letter to shareholders mid-August lamented what it believes is a deterioration of performance under Spiegel's leadership.
“William Spiegel is not the right person to be leading the company,” Phoenix had said. “We have confidence and trust in Ken Randall, the company's founder and former executive chairman. We seek his reappointment to the board as an executive director.”
Phoenix had claimed its move against Spiegel had followed its own repeat attempts at dialogue.
Phoenix also called for the board to be led by an independent non-executive chair, a call which current management has since indicated it would follow.
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