ALLISTER Langlands yesterday survived a protest vote against his promotion to chairman at Wood Group, where he is the second former chief executive to hold that position.
At the annual general meeting (AGM) in Aberdeen, investors controlling more than 17 per cent of Wood Group’s stock withheld their votes when it came to Langland’s re-appointment as chairman.
Abstentions do not count as part of the official ballot but, when added to a further 8.2 per cent cast against the resolution, nearly one-quarter of potential votes failed to back Langlands in his new role.
Langlands took over from former chairman Sir Ian Wood in November, having previously served as chief executive since January 2007.
The City’s corporate governance code – which outlines best boardroom practice – states that chief executives should not be elevated to the chairman’s role.
The energy services group has courted controversy on this point in the past. Wood served as chief executive of the formerly family-owned business for nearly 40 years before becoming chairman in 2007.
Updating shareholders on the company’s latest trading progress, Langlands said Wood Group remained confident of meeting its full-year targets despite sluggish progress in its GTS gas turbines division.
The maintenance business has been hit by delays to engine overhaul projects, but is expected to recover lost ground as the year progresses.