Sequoia chief's job at stake in upcoming EGM

Sequoia Financial Group will hold an Extraordinary General Meeting (EGM) in June that will consider a resolution to remove chief executive and managing director Garry Crole.

Sequoia was earlier this month informed by a group of shareholders, that collectively hold at least 5% of the voting shares, of their plan to propose resolutions at a general meeting to remove Crole and non-executive director Kevin Pattison as directors, replacing them with head of professional services Brent Jones, and former Xplore Wealth chair Peter Brook.

"The objective of this process is to focus on streamlining the current business with a focus on reviewing each of the current businesses units and strategically assessing those that are losing money or not garneting a sufficient return on the funds employed," the disgruntled shareholders said.

"We believe that the end goal will be to have a more focused and profitable business with a narrower focus, resulting in better outcomes for planners and their clients, translating into better returns for shareholders.

"We believe there are significant opportunities at present in the market and that Sequoia can further grow and participate in strategic opportunities with a narrower and more focused business."

Crole responded on Wednesday, stating that he expects that if the proposed resolutions are approved, the shareholders who proposed them will attempt to influence the board to remove him from his position without paying a control premium.

He pointed out that these shareholders and their associates hold only about 10% of Sequoia's shares yet have nominated to appoint 50% of the board's directors.

He noted how one of the investors pushing for the proposed changes only became a shareholder in February, so the decision to take such a drastic step to remove a managing director seemed unusual.

Crole added that the shareholders request was accompanied by a document that outlined at best vague intentions for the changes they want to make if the resolutions are approved.

Nevertheless, Crole said he was "obviously disappointed" to have to defend his position and acknowledged that there have been some suggestions that there are flaws in parts of his leadership style.

"My openness and support of those loyal people around me has been criticised, however I will let my results speak for themselves. I remain as passionate about Sequoia and our team as I always have," he said.

"Looking ahead, I have agreed to a new two-year contract with the board, during which time I will look to groom and mentor a suitable replacement for the business, who will continue to drive our excellent group performance.

"... I will use this [shareholder challenge] as a positive catalyst to sharpen my resolve."