Glencore share price: Company responds to shareholder pressure at AGM

on May 20, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Tuesday, May 20: Glencore Xstrata (LON:GLEN) responded to shareholder pressure at its annual general meeting today, committing to improving its board gender diversity.

The mining and commodity trading company’s chairman, Tony Hayward, pledged that Glencore will appoint a female director to its board by the end of this year.
“Glencore values and promotes diversity across its business. The appointment of a female board member would be a key sign of that commitment to this area,” said Hayward, the former BP boss who earlier this month was appointed as permanent chairman after serving a year as interim chairman (Glencore share price climbs as company announces chairman appointment). “It’s an important priority of the board to appoint a female director before the end of this year,” he added.

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Glencore has come under fire for being the last company in Britain’s FTSE 100 index with an all-male board (Glencore share price: Miner to face investor backlash at AGM).
The 2011 government-commissioned report by former banker and Trade Minister Lord Davies set a target for all companies in the blue-chip index to have a quarter of their board positions held by women by 2015, stating that “inclusive and diverse boards are more likely to be effective boards, better able to understand their customers and stakeholders and to benefit from fresh perspectives, new ideas, vigorous challenge and broad experience”.

Despite his commitment, Hayward’s comments received a less than enthusiastic response in some quarters.
“If Glencore were to appoint a single woman on the board by the end of the year, that would still leave them as the laggard of the FTSE 100. The question of diversity has gone past one representative on the board,” said a spokesman for fund adviser Pensions Investment Research Consultants (PIRC). “Glencore should foreshadow to the market now what the 2015 targets are for board diversity, and they need to get a bit of a hurry up.”

**Glencore share price edges higher**
Glencore has been trading in a positive territory so far today. As of 13:51 BST, the stock was changing hands at 328.15p – 0.17 percent up on the day.
According to AnalystRatingNetwork data, four equity analysts rate the FTSE 100-listed commodities giant as a ‘sell’, five give it a ‘hold’ rating and 14 are calling it a ‘buy’. The shares have a consensus rating of ‘hold’ and an average price target of 361.74p.
**As of 13:32 BST, buy Glencore shares at 328.60p.**
**As of 13:32 BST, sell Glencore shares at 328.40p.**

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