'Cosy' DFS rapped by investors

FORMER Iceland frozen foods boss Malcolm Walker faces a shareholder revolt at DFS, the furniture retailer where he is a non-executive director.

Walker is up for re-election this week, but investors fear he can no longer be regarded as independent because he has been on the board for more than ten years, contrary to corporate governance rules.

Shareholders fear that the make-up of the board is too cosy.

The National Association of Pension Funds, whose members control about a fifth of shares listed in London, is recommending members to abstain on Walker's re-election. Investment consultancy PIRC is urging that they vote against him.

Walker is one of only three part-time directors at DFS. Former Rover Cars boss Kevin Morley chairs the audit committee and has also been on the board for more than a decade. The third is former Halifax building society chief Mike Blackburn.

Investors are also unhappy that Tory Party fund-raiser Lord Kirkham, who is the biggest shareholder in DFS, remains the executive chairman.