Members of the Confederation of British Industry (CBI) hit out at a lack of transparency over its finances at the scandal-hit organisation’s annual meeting.
The meeting on Wednesday had been scheduled for September, but a race to secure a financial lifeline for the business lobby group caused a two-month delay.
In a sign of continuing concern about the organisation’s governance, nearly one in five members who voted opposed the re-election of the president, Brian McBride. A similar proportion rejected a motion to raise membership fees by 5%.
Other board members – Clare Barclay, Mark Logan and Jill Ader – were voted for reappointment by about 90% of member votes.
“There was a lack of transparency,” one member said. “We were told what the future might look like, not the present financial risks.” They said they had wanted more information on the membership renewals expected in January as the organisation is largely dependent on membership fees for its income.
On Monday the CBI said in its annual report and accounts that it was under considerable financial stress “emerging from an unprecedented situation” that had led to “exceptional costs”, adding there was “material uncertainty arising from the CBI’s financial performance since the year end”.
The CBI has faced financial pressure after many of its members quit in response to a sexual misconduct scandal, first revealed by this newspaper.
McBride told members that the organisation had “overhauled our HR policies and processes … reinforcing our grievance and their handling processes”. He added: “We have also taken decisive action to strengthen our culture, recommitting to our mission to ensure sustainable growth for the benefit of society.”
Sources said there was little discussion about its past or present finances, in particular regarding the decisions that led to the CBI losing £1m in 2022, after expanding its head count. Its financial problems have since forced it to significantly reduce its workforce.
Many members welcomed the appointment of Rupert Soames, Winston Churchill’s grandson, as the next CBI president, however.
Soames, the chair of Smith & Nephew, a London-listed medical tech group, and the former boss of the outsourcing company Serco, will take up the role in the new year before being formally elected by CBI members at its next annual general meeting in June.
A spokesperson for the CBI said: “It was an open forum. All members were invited and allowed to ask questions.”
