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Fisticuffs in the pub brings down another U.K. boss

Paul Hodgson | August 15, 2017

The Automobile Association (AA) finds itself in a delicate situation involving its recently fired top executive, declining share price, and the precepts of the U.K. Corporate Governance Code.

On 1 August, the AA released a fairly bold statement regarding the termination of Bob Mackenzie, the organisation’s former executive chairman: “The AA plc announces that Bob Mackenzie has been removed by the board from his role as executive chairman, from his other roles and as a director and as an employee of the company, for gross misconduct, with immediate effect. The issue was a personal matter and did not involve any financial misconduct.”

Such a statement says far more about what is not included than what is and, of course, caused a firestorm of speculation which only damaged the AA’s stock price, which had fallen by 20 percent immediately on the announcement, even more. Before the firing, the AA’s stock was at 201.90p. It is now worth 186.10p; it keeps trying to... To get the full story, subscribe now.