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Reckitt Benckiser - AGM 09 May 2019

Item 2: Approve the Remuneration Policy

 The changes proposed to the Remuneration Policy, strengthen the alignment between pay and performance.  However, they fall short of addressing the major concerns about the remuneration policy.  In particular, they do not reduce the maximum incentive remuneration, which can exceed 5000% of base salary and is considered grossly excessive.  The maximum bonus of 428% of base salary is well above ECGS guidelines limit of 150% of base salary.  Furthermore, there is no monetary cap on the LTIP awards, though there is a cap in terms of the number of shares which can be awarded.

 Additionally, although the LTIP is no longer exclusively determined by EPS, it is still heavily reliant on EPS.  This is not considered appropriate given the potential for executives to manipulate the share price and therefore the payout of their award. We recommend shareholders oppose.

Underlying
Reckitt Benckiser Group

Reckitt Benckiser Group develops, acquires, produces, distributes and promotes consumer products in the health, hygiene and home categories. Co.'s health category covers treatment products such as pain and flu, and also wellness products in sexual wellbeing, footcare, vitamins and supplements. Co.'s hygiene category consists of personal and home hygiene products. Co.'s geographical segments comprise Europe (ENA) and Africa, Middle East (DvM). ENA comprises Europe, Russia/CIS, Israel, North America, Australia and New Zealand. DvM principally comprises North Africa, Middle East (excluding Israel) and Turkey, Africa, South Asia, North Asia, Latin America, Japan, South Korea and ASEAN.

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