Whitbread shareholders fend off activist investor’s bid for board seat

Premier Inn owner Whitbread has fended off an attempt by an activist investor to get a seat on its board after the move was rejected by shareholders.Corvex Management had proposed appointing partner James Gemmel to the board as a director.The New York-based investment firm, which has a 6.4% shareholding in Whitbread, said the hospitality business had been underperforming in comparison to its peers and the wider market.It wanted Mr Gemmel to sit on the board to help bring a “fresh perspective” on the strategy of the company and its plans to deliver returns to shareholders.Corvex assured shareholders it was not seeking control of Whitbread or demanding that it be sold.But the proposal was struck down after a vote at Whitbread’s general meeting on Monday.Excluding votes by Corvex shareholders, 91% of votes were cast against the resolution.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.The company’s five-year plan involves making £250 million of cost savings and cutting capital expenditure by more than £1 billion.It announced plans to cut around 3,800 jobs earlier this year as part of the overhaul.