Report
Expert Corporate Governance Service (ECGS)
EUR 508.94 For Business Accounts Only

Proxy Report - 05/04/2018

In general, Volvo is in compliance with the Swedish regulations relating the organisation and procedures of the Annual General Meeting.

Under ITEM 13, the nomination committee proposes to increase the remuneration of the board of directors by about 3.0%. In ECGS' view the current fees are already at the upper level of Swedish market practice for a company with the size and complexity of
Volvo and it therefore does not approve of any increases without adequate justification. Since the proposal is not adequately justified, ECGS recommends to vote OPPOSE.

Under ITEMS 14.1-14.10, the (re-)election of the board of directors is proposed. In light of concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election of: Ms. Martina Merz (ITEM 14.7).

Under ITEM 19, the board of directors seeks approval of the Company's remuneration policy. ECGS questions the overall balance of Volvo's executive compensation package. The performance period of the LT incentive plan (1 year) is insufficiently long enough in ECGS' view and consequently, an actual LT component (with a performance measurement period of at least 3 years) is missing under the package. ECGS therefore recommends to vote OPPOSE.

Finally, ITEM 20 is a proposal made by a shareholder. ECGS does not support the proposal and accordingly recommends to vote OPPOSE.

Underlying
Volvo AB Series B

Volvo is a manufacturer of trucks, buses, construction equipment and marine and industrial engines. Co.'s activities are organized into six areas: Group Trucks, which sells and markets trucks under Eicher, Mack, Renault Trucks, UD Trucks and Volvo brands; Construction Equipment, which includes equipment for construction and related industries; Buses, which includes buses and bus chassis for city, intercity and coach traffic; Volvo Penta, which manufactures engines and drive systems for boats and commercial craft; Governmental Sales, which manufactures special-purpose vehicles; and Volvo Financial Services, providing customer financing and leasing, dealer financing and fee based products.

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)

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