City investors have summoned Misys' chairman and CEO Kevin Lomax and senior non-executive director Dominic Cadbury to a meeting to explain the reasons for the vendor's recent poor performance.
According to press reports, The Association of British Insurers (ABI), whose members control about a fifth of the UK stock market, has called a meeting with Lomax and Cadbury to discuss Misys' recent profit warning and the company's search for a new chief executive.
Misys share price has fallen by a third to around 200 pence in the last two years. Earlier this month the stock fell to a new year low after the vendor warned that first-half earnings will decline significantly due to delayed payments from banking clients, and it was uncertain if any profit shortfall would be recovered in the second half.
Investors were also angered by Misys' controversial bonus retention plan, which the vendor was forced to ditch. Under the proposed scheme Ivan Martin, head of Misys' banking division, and Tom Skelton, head of the firm's healthcare division, would have received a bonus of £1.2m each to to prevent them from leaving the firm if they are not selected to succeed Lomax, who plans to become non-executive chairman by 2008.
Lomax's twin-roles of chairman and chief executive breach City guidelines and Misys plans to separate the roles when he steps aside to become non-executive chairman in 2008. But some investors want Lomax to step down as chairman as early as next year.