Dame Dianne Thompson, chair of Sanderson Design Group and former chief executive of the National Lottery operator Camelot, is facing calls for removal by the company’s largest shareholder, LBV Asset Management. LBV, which holds approximately 14 percent of the luxury interiors supplier, has criticized the board under Thompson's leadership for what it describes as “inaction and inertia.”
LBV has formally requested Thompson’s replacement, arguing that the current board “inadequately reflects the views and interests” of Sanderson’s shareholder base. The fund manager is pushing for a new chair with a clear mandate and sufficient tenure to lead a sustained period of change. In addition, LBV is advocating for the appointment of Stephen Brooke as an independent non-executive director, though the company stated Brooke would receive no remuneration or other benefits from LBV related to the position.
Thompson joined Sanderson’s board as a non-executive director in February 2019 and was appointed non-executive chair shortly thereafter. She had previously served as chief executive of Camelot for 14 years until 2014 and spent nine years as a non-executive director at Next. Thompson is expected to reach the recommended nine-year board tenure in 2028.
LBV’s challenge follows dissatisfaction over senior executive pay packages approved by the board. In a letter to the directors last month, LBV criticized the £729,000 remuneration awarded to Sanderson’s chief executive, Lisa Montague, and the £403,000 package for the finance director. These figures, encompassing salary, benefits, pension, bonuses, and vested long-term incentives, collectively accounted for 36 percent of the company’s £3.1 million pre-tax profit in the current year.
Sanderson reported a return to profitability after a £13.9 million pre-tax loss last year, although current earnings remain below the £10.4 million recorded in 2022. The company’s shares, traded on the AIM market, have increased about 70 percent since January but remain down roughly 62 percent over the past five years.
LBV has requisitioned a general meeting scheduled for later this month, during which it plans to push for Thompson’s removal and Brooke’s appointment. In its letter, LBV stated the board appears resistant to leadership change and warned that change “will have to be thrust upon it.”
Responding on behalf of Sanderson, a company spokesman said the board believes LBV’s proposals are not in the best interests of the company or its shareholders. The spokesman cautioned that removing the chair at this stage could cause unnecessary disruption amid ongoing strategic progress and profitability improvements. The board also questioned how LBV’s nominee would strengthen the company and emphasized its continued focus on delivering sustained growth and shareholder value. A full response to LBV’s resolutions will be provided in an upcoming shareholder circular.