AA governance attacked after chief Bob Mackenzie is fired

Scandal-struck AA was blasted on Wednesday for perceived corporate governance failings after former executive chairman Bob Mackenzie was sacked.

The company has been flouting the corporate governance code by giving Mackenzie the combined roles of chief executive and chairman since it floated in 2014.

The company had promised to change its way this year but there were questions over why Mackenzie had been forced to hold the role for so long.

The roadside company yesterday said Mackenzie had been sacked for “gross misconduct”. The Mackenzie family dispute the claim and said he had an “extremely distressing mental health issue” and had resigned.

ShareSoc director Cliff Weight, who represents retail investors, blamed AA shareholders for voting to keep Mackenzie in the dual role. “The chief executive role of a quoted Plc is enormously challenging. There are huge demands on personal time and pressure to deliver results. A combined chairman and CEO role only adds to these pressures,” he said

Stephen Martin, director general of the Institute of Directors, added: “Regardless of the circumstances behind Mr Mackenzie’s departure, this story is an important reminder of the reason why the corporate governance code calls for separation of powers between chairman and chief executive.

“There would have been considerably less uncertainty this morning had the company not lost its two most senior positions with the removal of one individual”.

Chris Spencer-Phillips, managing director of non-executive search firm First Flight, said: “It was an accident waiting to happen having a chairman and a chief executive. It’s asking for trouble.”