Report
Expert Corporate Governance Service (ECGS)
EUR 1000.00 For Business Accounts Only

Pernod Ricard- AGM 8 November 2019

ITEMS 6 and 7: On December 2018, Elliott announced holding 2.5% of the capital of Pernod Ricard and, among other things, was asking for an improvement of the Group’s governance. Since their announcement, the following changes happened:

  • Patricia Barbizet, Chairwoman of the French High Committee of Governance (“Haut Comité de Gouvernement d’Entreprise”) became Lead Independent Director in January 2019
  • The company proposes the election of 2 independent directors to this 2019 AGM. These elections allow for a better independence rate of the Board and allow for a decrease of the overrepresentation of the Family Concert on the Board.

ECGS welcomes these improvements which meet comments and recommendations we have made for several years.

 ITEM 9: Alexandre Ricard’s fixed remuneration increased by 15% (which we opposed in 2018). That led to an increase of 15% of his total remuneration while Group’s employees’ remuneration only increased by 1%. At the same time, the Equity ratio (measured over the single  Company’s perimeter) increased by 19%. These significant increases, added to a redundancy plan, significantly impair the Group’s social cohesion. Thus, we do not support item 9 related to the Ex-post binding vote of remunerations granted to the Chairman and CEO.

 

Underlying
Pernod Ricard S.A.

Pernod Ricard produces and distributes wines and spirits. Co. produces aniseed products, vodka, whisky, cognac, rum, gin, liqueurs, champagnes and wines. Co.'s activity is organized around families of products built around brands. Its brands portfolio includes: ABSOLUT vodka, Ricard pastis, Ballantine's, Chivas Regal and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlua and Malibu liqueurs, Mumm and Perrier-Jouet champagnes as well as Jacob's Creek and Brancott Estate wines. Co. is structured into four segments constituted by the following geographic regions: France, Europe (excluding France), Americas, Asia/Rest of 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.

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Analysts
Expert Corporate Governance Service (ECGS)

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