That's Nice! Informa chiefs swan off on Riviera junket, and it will cost £1,000 for investors to go

Informa Board Heads to French Riviera Amid Shareholder Concerns

The entire board of Informa is set to convene in the sun-kissed French Riviera this week for its yearly gathering, making the publisher the latest London-listed entity to disincentivize shareholders from attending such events in person. This decision raises concerns about shareholder engagement and corporate accountability.

Informa’s action essentially makes its annual meeting an online-only affair for UK-based stock owners, as attending in person would demand significant time and expense.

Attending the meeting, hosted at the luxurious five-star Maison Albar hotel in Nice, would entail approximately £1,000 in travel and lodging costs.

Informa is following in the footsteps of companies like pharmaceutical giant AstraZeneca, defense firm BAE Systems, and consumer goods producer Haleon by shifting their annual meetings to a predominantly digital format. Critics argue this trend stifles examination, discussion, and disagreement, undermining shareholder democracy.

Concerns Over “Disappearing Directors”

Catherine Howarth, leading the small investor advocacy group ShareAction, characterized Informa’s move to the balmy Cote d’Azur as another instance of “disappearing directors.” She added, “Its decision not to make the board available to shareholders in the usual way this year confirms a growing pattern of disregard for shareholder accountability and access.”

She urged the government and regulators to “take steps to halt this pattern in its tracks.”

Shareholder Reactions to Informa’s AGM Location

Another shareholder labeled Informa’s decision as “unbelievable,” while a third voiced astonishment, particularly because last year’s physical event in London was “packed” and “one of the best I’ve ever been to.”

The FTSE 100 company has faced shareholder unrest regarding executive compensation.

Stephen Carter, previously a chief advisor to former Prime Minister Gordon Brown, has amassed nearly £40 million since assuming the role of chief executive in 2013.

He stands to earn £7.2 million this year, a 20% increase from the £5.9 million he received in 2024.

Informa’s Expansion and Acquisition of Cannes Lions

Carter, who previously headed communications regulator Ofcom before his tenure in Downing Street, has overseen Informa’s rapid growth into the world’s largest business events organization, elevating its stock market valuation to over £10 billion. The corporation also owns academic publisher Taylor & Francis.

Last year, Informa acquired France’s Ascential in a £1.2 billion transaction, incorporating the prestigious advertising festival Cannes Lions into its portfolio.

Chairman John Rishton informed investors that the meeting was convened in nearby Nice “to enable the board to attend” the festival, which is now Informa’s largest individual event and is also occurring this week. He added, “We are delighted to welcome shareholders to attend in person in France.”

They are likelier to view it online, as a single night at the hotel is priced at £765, including breakfast, while a return flight from Gatwick costs at least an additional £87.

Legal Ambiguity Surrounding Annual Meetings

Current company law is ambiguous regarding the location and format of annual meetings, as the legislation was formulated two decades ago, prior to the prevalence of virtual events.

Meetings must occur in a physical setting, but there are no specifications regarding whether it must be in the UK, if the board must be present, or if investors must be granted access. Government ministers are currently reviewing this matter.

Firms contend that in-person meetings are expensive to conduct and susceptible to disruptions from demonstrators, as evidenced recently at Drax when environmental activists prematurely concluded the energy generator’s meeting.

Under pressure from shareholders, some companies have reverted to a “hybrid” format.

These include Marks & Spencer, which faced accusations of “arrogance” and establishing “an appalling precedent” after attempting to conduct its meeting exclusively online.

Informa has stated that it “would expect to return” to London for next year’s AGM.