One of the founders of Shaw Stockbroking, Harold Shapiro, has walked away from the company he built and led for almost two decades, pointing to irreconcilable differences with the board.
In a brief statement, Shapiro said his decision to relinquish his non-executive directorship was the result of irreconcilable differences with the Shaw Stockbroking board, including disagreements over levels of executive salaries and bonuses and the board’s failure to consult with shareholders on indicative offers to acquire the company.
Shapiro acquired Shaw Stockbroking in a management buyout 18 years ago and remains the company’s largest shareholder. He resigned and retired as managing director of the mid-tier brokerage firm in September last year, and since then has been seeking to sell his 27 per cent shareholding.
Shapiro said the disagreements between him and the board had become “a major stumbling block” as he sought to sell his shareholding. He said the decision to relinquish his non-executive directorship would put him in a “better, no conflict position to act as a shareholder rather than as a director” as he continues to seek to sell down his shareholding.
Other concerns outlined by Shapiro included his disagreement with the board regarding the appointment of additional external independent directors and the company’s dividend distribution policy.
Shaw Stockbroking has 200 staff today, grown from 40 in 1990. The group provides stockbroking services to a number of financial planning groups, as well as offering a managed discretionary account service.
