Stobart under fire for appointing executive chairman

http://www.guardian.co.uk/business/2013/jan/21/stobart-group-under-fire

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Stobart Group has been criticised by corporate governance experts for promoting its deputy chief executive to executive chairman.

The haulage company, famous for its green Eddie Stobart articulated lorries that feature in Channel 5's Trucks & Trailers, has appointed Avril Palmer-Baunack its executive chairman, replacing non-executive Rodney Baker-Bates, 68, who is retiring.

Shareholder advisory group Manifest said the appointment of an executive to the chairmanship role was "a continuation of poor governance standards" at the company.

The corporate governance code states there should be a "clear division of responsibilities" between those running the company and those in charge of the board.

Manifest was also concerned that another non-executive director, David Beever, has stepped down in the boardroom shakeup. Following Baker-Bates' resignation, the company will have just three non-executives on its board.

Andrew Tinkler, Stobart's chief executive, said: "To meet the challenges and opportunities within our strategy the board now believes it is appropriate that Stobart is headed by an executive chairman. In the relatively short time that she has been with the group, Avril has demonstrated to the board that she is the right person to carry out this demanding role."

Palmer-Baunack joined Stobart last summer after the haulier's £12.4m takeover of Autologic, a car delivery company. Palmer-Baunack hit the headlines three years ago when she warned that Autologic's 280 drivers would lose their jobs unless they quit the union.