Report
Expert Corporate Governance Service (ECGS)
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Babcock Group PLC, 18 July 2019

Boatman Capital Research Activism

The Company has been subject to criticism in two reports by Boatman Capital Research (Boatmann). The first report in October 2018 claimed that the Company had been systematically misleading investors by burying bad news about its performance, should overhaul its leadership, and has a poor relationship with its largest customer, the UKns Ministry of Defence. The second report in May 2019 claimed that the Company should write down the value of its Defence Support Group subsidiary, should overhaul its executive team, and called the Companyns corporate structure, mopaque, needlessly complex, needlessly expensive and prone to errorsn Please see the attached report for further details.

Rejected Takeover by Serco

On 17 June 2019, following media speculation, the Company announced that on 23 January 2019 it had received man unsolicited and highly preliminary proposaln from Serco Group plc mSercon regarding a potential all-share combination between the two companies, and confirmed that no further proposal has been received. Item 2: Approve the Remuneration Report The structure is satisfactory. The quantum is not excessive and payout appears to be aligned with performance. In addition, pay is sufficiently weighted toward the long term, though the maximum LTI award will be reduced to only 10% more than STI for the coming year only. On balance, we recommend that shareholders support this resolution.

Underlying
Babcock International Group PLC

Babcock International Group is a holding company. Through its subsidiaries, Co. operates in four sectors: Marine, which provides an array of marine and naval engineering services; Land, which provides fleet management and training for customer-owned defense, emergency services, global airport and commercial vehicle fleets, as well as engineering services and technical training for customers worldwide; Aviation, which delivers an array of engineering services to defense and civil customers; and Cavendish Nuclear, which delivers nuclear engineering on nuclear decommissioning programs and projects across the U.K., as well as nuclear engineering services in training and operation support.

Provider
Proxinvest
Proxinvest

Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.

Proxinvest main services are :

  • ​Proxy reports
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Proxinvest has been a pioneer and champion of good corporate governance and has grown into a recognised expert in the field.

Proxinvest is independently-owned and only works for investors : Proxinvest does not provide consulting services to the companies it covers, mitigating related risks to its clients and ensuring the independence of our analysis. As a result Proxinvest is able to take a robust, independent, engaged and unconflicted view of the companies in which our clients invest.

As Managing Partner of Expert Corprate Governance Service Ltd (ECGS), Proxinvest has built a large network of corporate governance experts to support clients in corporate governance analysis worldwide. 

Analysts
Expert Corporate Governance Service (ECGS)

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