Ferrexpo chairman to retire following AGM

Steve Lucas, the chairman of Ukraine’s largest iron
ore pellet exporter Ferrexpo (FXPO LN), plans to retire and resign from the
company’s board of directors, according to Ferrexpo’s statement for its 2020
AGM held on May 28.

Lucas decided to retire because of personal reasons and
other business commitments, Ferrexpo said, adding that it plans to appoint Jim North, the recently-appointed acting CEO,
to its board.

Lucas was re-elected to the board at the AGM with
72.2% of total votes (and 31.5% of independent shareholders’ votes). Other
non-independent directors elected to Ferrexpo’s board at this AGM were Lucio
Genovese (98.9% of total votes and 97.4% among independents), the majority
owner and former CEO Kostyantyn Zhevago (67.6% and 19.6%), and CFO Chris Mawe
(93.9% and 85.0%).

The independent directors elected to Ferrexpo’s board
were Graeme Dacomb and Fiona MacAulay (both with 99.1% of independent
shareholders’ votes).

Only 31.8% of independent shareholders voted for
Vitalii Lisovenko as an independent director. Ferrexpo said that Lisovenko is
deemed to have been re-elected to the board until Ferrexpo either conducts a
second vote on his board candidacy (within 90 to 120 days after the AGM) or
announces its intention not to conduct a second vote. Lisovenko’s current
status will not last longer than 120 days, the company said.

Dmytro Khoroshun: Ferrexpo’s
independent shareholders are revolting again as those voting for Zhevago’s
board appointment at this 2020 AGM, 19.6%, is even lower than 24% at the 2016 AGM following
the Finance & Credit bank affair. The displeasure of the independents with
the board is also evident from their low support for Lucas, at only 31.5%.

We think that Ferrexpo’s independent shareholders
should continue to act to use a good opportunity to strengthen the company’s
board while the iron ore prices are high and while Zhevago is focusing on his
legal matters.