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Will there be any consequences for the JHX ex-directors.

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Will there be any consequences for the JHX ex-directors.

Hi A bit of a follow up to my question last week about the James Hardie directors who got booted at the AGM as a result of the Azek takeover debacle, although it does apply to other companies as well. Will their part in the Azek shenanigans and the fact that shareholders voted them off the JHX board because of it, have any effect on their careers? Is it likely to be the end of their directors careers and will it make other boards wary of appointing them, or will they just spend a couple of years in the corporate sin bin before they pop up somewhere else. Cheers, Carl

Answer

Hi Carl,

The $US8.75bn AZEK debacle has cost James Hardie (JHX) shareholders dearly with the market convinced JHX have paid too much for AZEK, plus after they delivered a painful downgrade just 5-months later the obvious question must be asked: shouldn’t they have been focusing on putting their own house in order before entering the M&A arena?

As for the 3 directors that weren’t re-elected, Anne Lloyd (Chair) had her re-election rejected with ~67.3% of votes against, accompanied by Rada Rodriguez and Peter‑John Davis being voted off the board what comes next is guess work at best. However, Anne Lloyd and Rada Rodriguez continue to hold other positions:

  • Anne Lloyd has served as a director of Insteel Industries Inc. (IIIN US) since 2019 and of Highwoods Properties, Inc. (HIW US) since 2018.
  • Rada Rodriguez has been CEO of Signify GmbH (Germany) since May 2021, and she also holds an unlisted directorship since 2014.

They are only aged 63-66 hence our best guess is they will resurface elsewhere but our focus is forward looking – is JHX good value ~$30 or should we deploy our funds elsewhere.

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James Hardie Plc (JHX)
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