Which $20 billion company just lost its Chair in a brutal shareholder revolt?

This building products company's Chair has borne the brunt of investor disquiet.

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Key points

  • The James Hardie Chair has been ousted by shareholders.
  • The company's Azek acquisition has caused shareholder ire.
  • James Hardie says it's on track to generate cost and revenue synergies.

James Hardie Industries plc (ASX: JHX) Chair Anne Lloyd has been dumped from the company's board following a huge vote against her re-election and a thumping strike vote on the company's remuneration.

The company held a brief annual general meeting (AGM) in Dublin, Ireland, early on Thursday morning. According to the Australian Financial Review, the meeting, which took place at 7am Australian time, lasted only 17 minutes.

Vote to oust Chair

And while final voting figures have yet to be released to the ASX, Chair Anne Lloyd was fated to lose her job by the meeting's end, with a whopping 67.3% of the votes cast before the meeting going against her re-election.

The company also notched up a first strike against its remuneration report, with 66.3% of votes cast before the meeting running against that resolution.

Takeover not supported

James Hardie investors have been vocal in their opposition to the company's $8.4 billion acquisition of US company Azek in July of this year, and have expressed their displeasure through strong protest votes at the AGM.

The company's chief executive officer, Aaron Erter, made a brief statement to the AGM on Thursday morning, saying FY25 was a "transformative" year for the building products company.

As he told the meeting:

The Azek transaction has positioned us to build upon our foundation with a great competitive edge and growth profile as we expand into a broader addressable market with an industry-leading portfolio. As One James Hardie, we are serving our combined customer base with a breadth of products and a broad manufacturing and support network.

Mr Erter said the company remained on track to realise $125 million in cost synergies within three years of the deal closing in July, "and, as we continue to integrate the business, we expect to unlock more significant revenue synergies''.

Mr Erter hinted at the shareholder disquiet in his comments, while not addressing any concerns specifically.

He said:

We also know we have more work to do, and we take the perspectives of all shareholders seriously. We have engaged extensively with many of you during the past several months and deeply appreciate all the feedback that we have heard. We are committed to continuous engagement and enhancing the value of your investment.

Mr Erter did not give a profit or trading update as part of his address.

James Hardie shares have traded as high as $58.82 over the past 12 months but are currently down 42.4% from those levels at $33.87, valuing the company at $19.6 billion.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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