43 million reasons to oppose ! At WPP Standard Life points to the double risk of self-dealing and complacency

At the WPP’s annual meeting in London the highest European 2014 package for a CEO, some 43 million for Sir Martin Sorrell was finally voted with only 22% of No votes, comparing with no less than 60% last year…Unpredictable investors !

WPP scandals market with a “jackpot-paying” to Sir Sorrell, of £ 36 million received from highly contested LEAP co-investment plan, bringing the total reported remuneration up to £ 43 million, or 37 times his salary. In 2015, the LEAP scheme participants have earned a share match of five times the number of shares they pledged in 2010. According to the press release published in March 2015, the maximum performance outcome results in the vesting of 2,326,945 shares for Sir Martin Sorrell, CEO, which would have been worth £ 16.86 million at the grant price in 2010 of £ 7.25 per share and which have more than doubled in value to £ 36.04 million at the vesting price of £ 15.49 per share on 13 March 2015.

Patrick Drahi : a € 17 million stock-options grant for a leader who does not like the term “Governance”

Les Echos, a French newspaper, related the governance vision of Altice-Numéricable’s Executive Chairman, Patrick Drahi: “Governance is a word I don’t really like. In companies there are bosses, and the boss is me.”

The principle behind governance is precisely to create a number of counter-powers, monitoring and verification to ensure that decisions are carefully discussed and considered and risks collectively insured to avoid autocracies and ensure that all stakeholders are respected including the providers of capital, the shareholders. When analysing the general meeting of Altice held on the 1st of June, Proxinvest soon realizes that Patrick Drahi was honest, governance is a word he does not like.

DSW present a resolution for more independent audit at Deutsche Bank

Deutsche Bank on 21 of May 2015 ( DSW completed its ECGS research report available on the on line ECGS Shop)  as follows :

“Pursuant to Section 122, Paragraph 2 of the German Stock Corporation Act, DSW (Deutsche Schutzvereinigung für Wertpapierbesitz – The No.1 German Association for Private Investors) will request that the following items be included in the agenda of the General meeting of Deutsche Bank AG that will take place on 21 of May 2015:

Appointment of a special auditor in accordance with Section 142, Paragraph 1 of the German Stock Corporation Act to audit the question, whether the management and supervisory board of Deutsche Bank violated their legal duties and thereby harmed the company.

Will Renault CEO Carlos Ghosn be the highest paid French CEO for 2014?

The Paris financial press is not very factual when it merely explains, such as Les Echos, that the Renault CEO’s full  2014 “package” amounted to € 7.2 million for 2014. But the real figure exceeds the twofold.

This newspaper still quotes Proxinvest Chairman, Pierre-Henri Leroy: “Carlos Ghosn will become the highest paid French CEO here, with pharaonic amounts only obeying fuzzy criteria.” Proxinvest, the French partner of ECGS, completed its ECGS research report available on the on line ECGS Shop.

Independence of Sika: Large support from shareholders not linked to the Burkard Family

 At the general meeting of Sika yesterday, 97%of shareholders not linked to the Burkard Family voted in favor of Ethos' resolution (the Swiss partner of ECGS) to remove the opting out. These shareholders also overwhelmingly supported the chairman and the independent members of the board. The Burkard Family saw itself completely isolated in its attempt to sell its holding company to the competitor Saint Gobain.

RWE: Special audit of Essent deal, of Lechwerke AG delisting and RWE Polska Contracting management is requested

Three shareholder proposals have been added by Dela Beteiligungs GmbH to the agenda of the annual meeting of RWE, German electricity and gas Company. The shareholder requested special audits within certain management board actions. The supervisory board of RWE deems requests unsubstantiated and proposes rejection. ECGS supports two of these actions.

Vivendi, which concentrates shareholders activism in France, practices bullying

 

Vivendi’s Management Board and its largest shareholder Chairman of the Supervisory Board, Vincent Bolloré, received the inscription of three external draft resolutions for the meeting of April 17, 2015. Some of the group‘s answers turned to intimidation if not to misleading information …

The first resolution proposed A, for the maintenance of simple voting rights, following the campaign of Phitrust, advised by Proxinvest. A group of top investors came to support the draft resolution A. These include the pension fund of the British railway, Railpen, the giant of the British insurance Aviva Investors, of the largest Dutch pension fund PGGM, the US giant CalPERS, famous retirement funds of  the Californian State employees, the  giant collective management in France, Amundi with his little sister CPR AM, a subsidiary of Crédit Agricole, Natixis group’s asset management subsidiary  DNCA Finance, the Edmond Rothschild asset management subsidiary and the big French mutual insurance group OFI-Macif.

The premiumless acquisition of Lafarge by Holcim shows the perverse impact of the double voting right provision

At Lafarge, the “merger of equals” has demonstrated both the betrayal of French individual shareholders by the management and its absence of corresponding self-vision:  the search of size at any price with the encouragement of large banks  has produced the merger plan with Holcim, but the  transaction is only based  on modest volume synergies and  on the sharing of markets  instead of  growth based on internally generated efficiency, quality and technological research.

This  mega deal  somehow covered-up the cost and the current risk of an unfortunate management decision by Bruno Lafont, the acquisition of Orascom Cement, announced in December 2007,  was to be balanced the now happy over-exposure of Holcim in India … This Lafarge-Holcim merger turns now into a  takeover without premium for the Lafarge shareholders …

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