In item 4, the Board proposes to re-appoint Mr. José Arnau Sierra as "proprietary Director" representing the controlling shareholder Mr. Amancio Ortega Gaona (59.3% of the share capital). Mr. Arnau Sierra is the non-executive Vice Chairman of the Board and he is a member of all internal Committees. We have serious concerns over the composition of the Board of Directors, as the positions of Chairman and CEO are combined and the Board has not a majority of independent members (44% according to the Company and the ECGS guidelines). Therefore, we recommend opposition.
In item 6, shareholders are called to an advisory vote on the Annual Remuneration Report, including the remuneration policy and the amounts paid last year. The variable remuneration components are adequately structured to align the interests of the executives with those of the shareholders in the long term, but we have serious concerns over the excessive weight of discretionary assessments on the annual bonus (30%), also taking into account that the Board has not a majority of independent members. We also find as excessive the base salary of the Chairman-CEO (€ 3'250'000), on which basis the variable is calculated, and the leaving indemnities (€ 7.3 million under the defined contribution plan and a € 6.7 million severance pay). Also taking into account that the long-term incentive will vest even if operating targets are significantly missed (50% of the incentive will vest if only 50% of targets in terms of EBIT and sales are met), we recommend opposition.
Industria de Diseno Textil Inditex is the parent company of a group engaged in apparel and footwear manufacturing and retailing. The Group is made up of fashion retail chains, textile manufacturing, purchasing and fabric treating companies, logistics and construction companies which are responsible for store refits and manufacturing structure. Products include men's, women's and children's wear collections, footwear, and women's lingerie which are sold through the Group's retail store chains of: Zara, Kiddy's Class, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, and Oysho and Zara Home.
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The general evaluation of INDITEX SA (ES), a company active in the Apparel Retailers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date March 22, 2019, the closing price was EUR 26.27 and its potential was estimated at EUR 28.49.
We are maintaining our fair value estimate of EUR 31 per share for narrow-moat Inditex as the company delivered lower-than-expected profits for 2018. Revenue was in line with our expectations while operating profit was 5% lower than we anticipated, largely driven by higher depreciation and amortization charges than we expected. Operating expenses, which include rental, employee, and other (related to online), increased 4%, in line with our expectations. Out of these, personnel expenses grew 4%, and rental expenses grew only 1% despite net space growth of 4.7%, showing good cost control and lea...
We are maintaining our fair value estimate of EUR 31 per share for narrow-moat Inditex as the company delivered lower-than-expected profits for 2018. Revenue was in line with our expectations while operating profit was 5% lower than we anticipated, largely driven by higher depreciation and amortization charges than we expected. Operating expenses, which include rental, employee, and other (related to online), increased 4%, in line with our expectations. Out of these, personnel expenses grew 4%, ...
L'ensemble des rémunérations des dirigeants mandataires sociaux font l'objet des résolutions 6 à 11. La particularité d'Infotel est de présenter des politiques de rémunération ne comportant aucune part variable. Cette spécificité n'est pas en accord avec notre politique de vote. Toutefois, les mandataires sociaux dirigeants sont tous actionnaires à au moins 1,99% du capital et les montants sont raisonnables, ce qui atténue nos réserves et permet des recommandations positives. Les caractéristiques du conseil d'administration ne répondent pas à nos attentes en matière de gouvernance puisqu'il e...
Suite au transfert des titres de la Société sur Euronext Growth le 6 août 2018, la Société n’a plus d’obligation de se référer au Code de Gouvernance MIDDLENEXT auquel elle se référait depuis 2010 pour l’élaboration du rapport du Président sur le gouvernement d’entreprise, le contrôle interne et la gestion des risques prévu à l’article 225-37 du Code de Commerce et relatif à l’exercice clos le 31 décembre 2009. La société ne précise pas à quel code elle se réfère. Proxinvest avait déjà souligné l’année précédente que ce changement vers un marché moins règlementé était regrettable ; communicati...
Proxinvest veut attirer l'attentions sur quelques points majeures: D'une part, nous félicitons la Société pour la modification statutaire visant à réduire la durée du mandat des membres du Conseil de Surveillance de 6 à 3 ans. D'autre part, nous regrettons les montants des membres du Directoire (en cours) qui sont trop élevés par rapport à la médiane des rémunérations totales des dirigeants de leur indice. Enfin, nous encourageons la Société à améliorer le taux d'indépendance du Conseil, qui est pour le moment de seulement 25%.
Le conseil présente une majorité de membres non libres de conflits d'intérêts d’après Proxinvest à cause surtout de l’ancienneté des administrateurs qui dépasse notre seuil de 11 ans. Il est présidé par le Directeur général. Par ailleurs, les mandats d'une durée de 6 ans semblent trop longs car ils ne permettent pas aux actionnaires de se prononcer assez fréquemment sur la composition du conseil. Les différentes autorisations financières ne respectent pas la politique de vote de Proxinvest en termes de montants mais également en raison de leur possible utilisation en période d'offre publique. ...
ITEM 10: Benoit Bazin was designated Deputy CEO as of 1 January 2019. The company proposes therefore to approve its 2019 remuneration policy, as well as its post-employments benefits. Overall, his remuneration policy structure is more in line with our recommendations and amounts at stake are more moderate than the CEO’s. Thus we support it. Regarding his post-employments benefits, his severance indemnity and non-compete clause do not respect our Guidelines. However, his supplementary pension plan does. Thus, we support Item 12.
GOVERNANCE On 1 June 2018, Laurent Mignon left his position as Chief Executive Officer to become Chairman of the Management Board of BPCE, Natixis' main shareholder with 71% of the capital. He succeeded François Pérol as Chairman of the Board of Directors of Natixis and François Riahi became the new Chief Executive Officer. The Board remains composed of a majority of members who are not free of potential conflicts of interest, which makes it impossible to support most of the many co-optations and renewals proposed (resolutions 12 to 22). REMUNERATION Due to changes in governance, in a...
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