Report
Expert Corporate Governance Service (ECGS)
EUR 1000.00 Purchase single report

Lenzing April 17th, 2019

General: The Lenzing Group is an international producer of high-quality fibers and filaments from the renewable raw material wood with environmentally friendly and innovative technologies. These fibers form the basis for a wide range of textile and nonwoven applications, and are also used in work and protective wear and in industrial applications.

As of 31 December 2018, B&C Privatstiftung via B&C Industrieholding GmbH held 50% + 2 shares and Oberbank AG held 3.8% of the Company's shares.In financial year 2018, Group revenues decreased by 3.7% to EUR 2.2bn, EBIT decreased by 36.0% to EUR 237.6m and net income attributable to the shareholders of Lenzing AG decreased by 46.4% to EUR 149.0m.

Item 4: Supervisory Board Chairman Dr. Hanno M. Bästlein will resign from the Board with effect as of the close of the AGM 2019. The Company fails to disclose who will stand for the position of Chairman after the AGM. We raise our concerns over this lack of transparency. In line with our guidelines we would in principle recommend opposing the discharge of the Chairman of the Supervisory Board's Nomination Committee, Dr. Hanno M. Bästlein. As the discharge is proposed in a bundled resolution, we recommend shareholders to oppose the discharge of the Supervisory Board as a whole.

Items 5 and 6: Approval is sought for the Supervisory Board members' fees for financial years 2018 and 2019. We consider the absolute amount of fees as inadequately high and exceeding market average. We therefore recommend opposition.

Items 7.1 and 7.3: We recommend to oppose the re-election of Dr. Felix Fremeney to the Supervisory Board due to our concerns over independent representation on the Board. Furthermore, we recommend to oppose the election of Dr. Stefan Fida due to concerns over aggregate time commitments.

Underlying
Lenzing AG

Lenzing is engaged in supplying the global textile and nonwovens industries with man-made cellulose fibers and is a supplier in many business-to-business markets. The portfolio ranges from dissolving pulp, standard and specialty cellulose fibers to high-quality plastic polymer products and engineering services. Co.'s operations are divided into three segments: Fibers, which produces and markets man-made cellulose fibers for the textile and nonwovens industry; Plastics, which produces weaving, labelling films, laminates and woven fabrics; Engineering, which implement projects, supply plant and equipment and provide services arond the world.

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
  • Definition and monitoring of client customized voting guidelines
  • Corporate Governance Data and Rating
  • Thematic research
  • Engagement support

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)

Other Reports on these Companies
Other Reports from Proxinvest
Other Reports from these Analysts

ResearchPool Subscriptions

Get the most out of your insights

Get in touch