This general meeting raises the debate on the level of the responsible dividend for EDF.
While the board of directors proposes to divide the stock dividend by two, th employee shareholders, via the EDF Actions France, propose in resolution A not to distribute dividends. Proxinvest congratulates the board for this strong and uncomfortable decision to drastically reduce the dividend. Because of the investment needs and the free cash flow, it remains high to ensure its sustainability. The company offers the option for the stock dividend that give the possibility to limit the cas outflows but the stock dividend option offers a discount of 10%. Thus, the more dividend EDF distributes, the more minority shareholders who opt for the cash dividend are diluted on unfair conditions.
The 2017 general meeting had rejected certain agreements in view of a supposed lack of information as the state is not taking part in the vote. It is again proposed to approv this time the final agreement for the acquisition of Areva reactor activities for €2.4 billion,with EDF accounting for 75.5% of the new Framatome facility, alongside Mitsubishi Industrials (19.5%) and Assystem (5%).
Electricite de France is an integrated energy company with a presence in a range of electricity-related businesses: nuclear, renewable and fossil-fuel fired energy production, transmission, distribution, marketing as well as energy management and efficiency services, along with energy trading. Co. is an integrated energy company engaged in all aspects of the energy business: generation, transmission, distribution, supply and trading of energies. Co. is an electricity operator in France and abroad. The breakdown used by Co. for its activities is as follows: France; United Kingdom; Italy; Other International; and Other activities.
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.
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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.
Given its low carbon intensity, EDF is the best-positioned utility in our coverage to benefit from increasing carbon prices.We calculate that a EUR 1 increase in carbon prices per metric ton would add EUR 0.50 per share, or 3%, to our fair value estimate. The benefit of increasing power prices driven by higher carbon prices is partially capped at EUR 42 per megawatt-hour due to the ARENH mechanism, which enables alternative suppliers in France to buy up to 100 terawatt-hours of electricity from EDF at that price.Alternative suppliers' demand for AREHN significantly exceeded 100 TWh in 2018, so...
In general, Lundbergforetagen is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 12, approval is sought for the re-election of the board of directors. Although there is just sufficient independent representation on the board, ECGS notes that the number of executives (3) sitting on the board is NOT in accordance with provision 4.3 of the Swedish Corporate Governance Code. Aforementioned provision stipulates that no more than one (1) member of the board may be a member of the executive management. Based on the abov...
Merger with Hewlett Packard Enterprise, Profit Warning and Sale of SUSE Business On September 2016, the Company entered into a definitive agreement with Hewlett Packard Enterprise (HPE) on the terms of a transaction which provided for the combination of HPEns software business segment with the Company by way of a merger. The transaction was valued at $8.8bn. On March 2018, the Company issued a profit warning arguing that its revenues declined more than expected due to problems stemming from its acquisition of Hewlett Packard. On 22 March 2018, Hsu resigned from his position of CEO min order to...
Cette année encore, Proxinvest déplore le manque d’informations et de transparence concernant les administrateurs de la société ainsi que la rémunération des mandataires sociaux : aucune information ni biographie n’est disponible sur les membres du conseil. En outre, Proxinvest s’opposera cette année à la politique de rémunération des dirigeants mandataires sociaux en raison du manque de transparence (résolution 5) et sur les montants attribués au cours de l'exercice au Président-Directeur général qui semblent trop élevés au regard de la taille de la société (résolution 6).
Afin de pouvoir remplir au mieux la mission de surveillance et de protection de l’ensemble des actionnaires qui lui incombe, il nous semblerait préférable que le conseil ne soit pas composé de seulement cinq membres dont deux personnes de la famille du principal actionnaire. La société fait preuve de légèreté dans la transparence des informations communiquées aux actionnaires en matière de rémunération. Par conséquent, la plupart des résolutions référentes aux rémunérations des dirigeants connaitront un recommandations négatives au regard de ce manque de transparence. Dans la même optique, ...
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