Ashmore under fire for buyback proposals that could hand CEO controlling stake

Potential to surpass 50% shareholders warned

Laura Dew
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Ashmore shareholders are being urged against proposals regarding CEO Mark Coombs
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Ashmore shareholders are being urged against proposals regarding CEO Mark Coombs

Shareholders in Ashmore are being urged to vote against a controversial proposal that could allow chief executive Mark Coombs to gain a controlling stake in the company.

According to the Financial Times, proxy advisory firm Institutional Shareholder Services (ISS) is recommending shareholders vote against proposals that would give Coombs more control without offering a takeover premium. The emerging markets specialist usually returns excess capital via dividends but is proposing to move to a share buyback programme.  If the company repurchased these shares and Coombs did not participate in the buyback then his stake in Ashmore would rise.  Coombs, who has served as chief executive since ithe firm was founded in 1998, already has a 38.6% holding in ...

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