On September, 21st 2017, Liliane Bettencourt, daughter of Eugene Schueller, founder of L’Oréal, passed away.
The shareholders agreement between Nestlé and the Bettencourt Family ended on March, 21st 2018 (6 months after Ms Bettencourt dies, in line with provisions). On February 15th 2017, Nestle published a press release: “The shareholders agreement between Nestlé and the Bettencourt family is due to expire on March 21, 2018. In order to maintain all available options for the benefit of Nestlé's shareholders, the Board of Directors has decided not to renew this agreement. We do not intend to increase our stake in L'Oréal and are committed to maintaining our constructive relationship with the Bettencourt family”.
Hence, L'Oréal could use the repurchase authorization (item 12) to buy Nestlé's shares, if Nestlé sells them (l'Oréal's Chairman already announced that if Nestlé sells its stock, L'Oréal would be ready to buy it (https://www.reuters.com/article/us-loreal-results-nestle/loreal-ready-to-buy-nestle-stake-in-cosmetics-leader-idUSKBN1FT101). This authorisation could be used to buy 43% Nestlé's shares (the authorisation allows the company to buy back 56,051,908 of its own shares and Nestlé owns 129,881,021 of L'Oréal's shares as of 31 December 2017).
Item 6: Mr Agon’s mandate renewal is proposed. Even though the board does not have a majority of independent members, we note that 2 independent members are to be elected and that the global performance of Mr Agon is satisfactory; hence we support his re-election.
L'Oreal acts as a holding company. Through its subsidiaries, Co. plays a strategic coordination role and scientific, industrial and marketing coordination role on a global basis. Co. develops, manufactures and commercializes products for Skin care, Hair care, Make-up, Perfumes, Toiletries and deodorants, and Oral cosmetics. Co. has three branches: Cosmetics, Body shop and Dermatology. Co.'s principal activities comprise four divisions: Professional Products, Consumer Products, L'Oreal Luxe and Active Cosmetics. The Body Shop branch offers various cosmetics and toiletry products. The Dermatology branch offers topical dermatology prescription, and corrective and aesthetic dermatology.
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 :
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.
As a dominant player in the global cosmetics industry, L’Oréal has developed an attractive portfolio of leading brands that have helped it secure an enduring competitive edge. We maintain these brands have allowed L’Oréal to develop long-standing relationships with retailers that rely on its offerings to drive store traffic; these assets, coupled with the firm’s attractive cost structure, underpin our wide moat rating. While we expect ample competition in the near term, particularly as newer distribution channels like e-commerce remove some of the initial barriers for newer entrants, we think ...
Wide-moat L’Oréal finished 2018 on a strong note, with 8.6% comparable sales growth during the fourth quarter leading to full-year growth of 7.1%. The Active Cosmetics (8% of sales) and Luxe (35% of sales) segments continued to be the key drivers of these gains, chalking up 15% and 12% like-for-like sales growth, respectively, during the quarter. We expect these businesses to lead growth longer term as well (with each segment averaging high-single-digit growth over the next five years) as indust...
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...
La documentation relative aux conventions réglementées n’a pas été disponible dans les délais légaux, la société ayant publié le document contenant le rapport spécial des commissaires aux comptes sur les conventions réglementées 20 jours avant la date de l’assemblée générale. Par ailleurs, on notera que la société propose un renouvellement en bloc de ses admnistrateurs, pratique inacceptable ayant disparu conformément à la recommandation 13.2 du Code AFEP-MEDEF. La société justifie cette dérogation au code par une nécessité d'assurer la stabilité de ses organes de contrôle dans le temps et le...
ITEM 9: the company still refuses to disclose the individual remuneration amounts of its executives while it complies with some governance rules for companies listed in Paris (where the majority of its Fiduciary Deposit Receipts, "FDR", are traded). It is not understandable that a company, aware of the French practices and applying some of them, deliberately chooses to ignore some of the basic fair governance and fair disclosure principles. However, we note that the Shareholders Rights Directive II ("SRD II") must be transposed by June 2019. SRD II states "Member States shall ensure that the...
Unfortunately, this report is not available for the investor type or country you selected.Browse all ResearchPool reports
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.