Victoria’s Secret shareholders have overwhelmingly re-elected all nine director nominees, handing a clear victory to the company’s board and leadership team, a reported on guru focus.
Independent Chair Donna James secured more than 99% support, excluding opposing votes, despite a campaign by major investor Brett Blundy to block her re-election.
The result signals strong shareholder confidence in the retailer’s leadership and turnaround strategy.
Challenge rejected
The vote marks a setback for Blundy and his investment firm, BBRC International, which owns around 13% of Victoria’s Secret.
For several years, Blundy has pushed for changes at the company. He has criticised the board’s performance and accused it of overseeing “value destruction, misallocated capital and anti-stockholder governance”, according to the Guardian and other media reports.
He also argued that James’ long tenure had weakened board independence.
BBRC had urged shareholders to vote against James and director Mariam Naficy. However, Naficy later withdrew from the election, leaving James at the centre of the campaign.
Board holds firm
Victoria’s Secret consistently defended its leadership throughout the dispute.
The company argued that its board was best placed to guide the business through its transformation under chief executive Hillary Super.
It also rejected Blundy’s efforts to secure a board seat, citing reputational concerns and potential conflicts of interest linked to his involvement in other retail businesses.
The disagreement became increasingly public in recent months, highlighting growing tensions between the retailer and one of its largest investors.
Advisors side with company
Ahead of the vote, major proxy advisory firms ISS, Glass Lewis and Egan-Jones recommended that shareholders support the board.
The firms said BBRC had not made a strong enough case for governance changes.
While ISS acknowledged concerns around James’ lengthy tenure, it concluded that the board should remain in place as the company’s performance continues to improve.
Turnaround gains support
The vote comes as Victoria’s Secret shows signs of recovery.
The retailer recently upgraded its full-year outlook after reporting stronger-than-expected first-quarter results. Net sales rose 15% to US$1.56 billion in the quarter ended 2 May.
The company has been focused on improving products, reducing discounting and strengthening its brand position.
Shareholders appear to believe those efforts are starting to pay off.
The outcome gives the board a stronger mandate to continue its transformation plans and suggests investors are willing to back the current leadership team as the business moves into its next phase of growth.