In general, Ericsson is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting.
Under ITEM 8.2, discharge of the board of directors & CEO is sought. ECGS notes that the Company's CEO (Mr. Börje Ekholm) and CFO (Mr. Carl Mellander) became defendants in a US lawsuit alleging violations of US securities laws. As long as the results of this investigation are unclear, ECGS is unwilling to grant discharge. Accordingly, ECGS recommends to vote OPPOSE.
Under ITEM 10, the nomination committee seeks approval of the remuneration of the board of directors. Although the proposed fees are conform to market practice for an international company with the size and complexity of Ericsson, ECGS does not approve of the partial payment in synthetic shares. Hence, ECGS recommends to vote OPPOSE.
Under ITEMS 11.1-11.10, the nomination committee proposes the (re-)election of the board of directors. In light of insufficient independent representation on the board and concerns over aggregate time commitments ECGS recommends to vote OPPOSE to the (re-)election of: Mr. Jan Carlson (ITEM 11.2), Ms. Nora Denzel (ITEM 11.3), Mr. Eric A. Elzvik (ITEM 11.5), Mr. Ronnie Leten (ITEM 11.7), Ms. Helena Stjernholm (ITEM 11.9) and Mr. Jacob Wallenberg (ITEM 11.10).
Under ITEM 12, the nomination committee proposes to re-appoint Mr. Ronnie Leten as Chairman of the board of directors. ECGS has various concerns over his re-appointment and therefore recommends to vote OPPOSE.
Under ITEM 15, the nomination committee proposes to re-appoint PricewaterhouseCoopers as the Company's statutory auditor. Although the level of non-audit fees is in line with its guidelines, ECGS notes that the current auditor has been in office for 49 years, which exceeds its guidelines. Accordingly, ECGS recommends to vote OPPOSE.
Under ITEM 16, the board of directors seeks approval of the Company's executive remuneration guidelines. Since the proposed (executive) remuneration guidelines are NOT in accordance with its guidelines, ECGS recommends to vote OPPOSE.
Under ITEM 17, the board of directors seeks approval of a LT incentive plan. ECGS notes that the maximum LTI (corresponding to 360% of annual base salary) exceeds the threshold in its guidelines. Accordingly, ECGS recommends to vote OPPOSE.
ITEMS 17.2-17.3 are considered enabling resolutions of the LT incentive plan (see above). ECGS thus recommends to vote OPPOSE.
ITEM 20 is a proposal made by a shareholder. Although there is very limited information available with regard to the proposal, ECGS recommends to vote FOR. Finally, ECGS notes that Ericsson is currently involved in two US lawsuits which relate to: (i) possible corruption in its China business; and (ii) violations of US securities laws (see also above).
Ericsson provides communications technology and services. Co.'s services, software and infrastructure – especially in mobility, broadband and the cloud – enable the telecom industry and other sectors to do business, increase efficiency, improve the user experience and capture new opportunities. Co. has more than 110,000 professionals and customers in more than 180 countries. Co. provides support for networks with more than 2.5 billion subscribers. Co.'s core business areas are called Radio, Core and Transmission and Telecom Services. Co. divides its operations into three business segments: Networks, Global Services and Support Solutions.
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Our third TMT Forum in Paris and Frankfurt was attended by 21 companies and over 140 investors. We came away from the discussions with a fairly positive sentiment, particularly with the approach of the low point for semiconductors, the improved advertising trend in Q1 2019 and a more aggressive stance from telecoms operators despite the price environment. We are raising our target prices on Worldline (€ 52 to € 68) and Ericsson (SEK 85 to SEK 95). - >Third ODDO BHF TMT For...
Nous avons organisé notre 3ème Forum TMT à Paris et Francfort avec 21 sociétés et 150 investisseurs. De nos échanges ressort un sentiment plutôt positif, notamment sur l’arrivée du point bas dans les semi-conducteurs, l’amélioration de la tendance publicitaire au T1 19, un ton plutôt offensif des opérateurs télécoms malgré l’environnement de prix. Nous relevons nos OC sur Worldline (52 € à 68 €) et Ericsson (85 SEK à 95 SEK). - >3ème Forum TMT ODDO BHF - Notre 3ème for...
Proxinvest attire l’attention des actionnaires sur les points suivants : Tout d’abord les rémunérations attribuées au titre de 2018, résolutions Ex Post, rencontrons des recommandations négatives du fait que la société ne communiquent pas les taux d’atteintes de chacun des critères de performance pour la rémunération variable. Concernant les politiques de rémunération, Proxinvest recommande l’approbation des politiques du fait de l’amélioration en termes de transparence et l’inclusion d’un critère lié au RSE.
Rémunérations : La société communique très précisément la nature des critères quantitatifs non financiers, mais elle ne communique ni leurs poids individuels, ni les objectifs qui devaient être atteints, ce qui ne permet pas aux actionnaires d’estimer si les montants attribués au titre de cette part sont bien alignés sur les performances réalisées, et ce alors même que cette part pèse pour 42% du bonus du Directeur Général. Par ailleurs, l’un des critères de performance des actions de performance permet l’acquisition en cas de sous-performance du critère, ce qui n’est pas une pratique acceptab...
In item 3, the AGM is called to appoint the Board of Statutory Auditors on slates of nominees submitted by shareholders holding, even jointly, at least 0.5% of UniCredit's share capital. Two slates of nominees have been submitted, by UniCredit's business partner and shareholder Allianz (1.0%) and a group of institutional investors (1.7%).One of the institutional investors that submitted the slate of nominees is Generali Investments, which is a client of ECGS partners Proxinvest and Frontis Governance. It is important to note that these partners do not provide consulting services to Generali. V...
In item 4, shareholders are called to an advisory vote on the remuneration report. We have serious concerns over the variable remuneration structure, as it exclusively depends on annual results and no limits to the maximum bonus are disclosed. In our opinion, the executive remuneration is not adequately linked to long-term results, hence he recommend opposition. In item 5, the AGM is called to appoint the members of all corporate bodies (Board of Directors, Board of General Meeting and the statutory auditor) in a single item. The members of the Board of Directors and the Board of General Meet...
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