Star investor takes revenge on his old boss at Schroders

A FEUD between two of the City’s biggest names burst into the open yesterday when a star fund manager voted against his old boss getting a new job.

Richard Buxton, who runs Old Mutual Global Investors, objected to the controversial elevation of Michael Dobson from chief executive of Schroders to chairman.

Buxton, 52, used to work for Dobson at Schroders before moving to Old Mutual – and his challenge to his former boss is likely to fuel speculation over the ill-feeling between the pair. It is widely known they do not get on.

Dobson’s switch was passed at an annual general meeting, despite it being frowned upon because the chairman is meant to be an independent figure holding executives to account.

But almost a third of independent shareholders’ votes were cast against the move, and sources said naysayers included Old Mutual.

Dobson, 63, won fulsome support from City grandee David Mayhew, the former chairman of JPMorgan Cazenove, for his ‘exemplary performance’.

‘The management team has really transformed this business,’ the Old Etonian said.

Justifying the appointment, senior independent director Lord Philip Howard said: ‘It was clear to the board,’ he said, ‘that we had an outstanding candidate in our midst.’

Dobson said he had accepted the invite to serve as chairman, with annual pay of £625,000, because of his ‘commitment to this company’.