ITEMS 7 and 8: In the 2019 remuneration policies of the Members of the Management
Board, the company proposes to increase the measurement period of the options
performance condition up to 3 years, following ECGS past criticisms; we commend the
Company for this change which is a significant improvement compared to the previous
remuneration policy and justifies our support of Items 7 and 8. However, we urge the
company to amend performance conditions of performance shares as vesting scales of 2
out of 3 performance conditions allow vesting in case of underperformance.
Wendel is an investment company specializing in acquiring long-term holdings in industrial and services companies. Co.'s activities can be divided into six main divisions. Through Bureau Veritas, Co. provides conformity assessment services and certification. Through Stahl, Co. is engaged in high performance coatings and leather finishing products. Through Saint-Gobain, Co. manufactures, transforms and distributes construction materials. Through Legrand, Co. specializes in electrical and digital building infrastructures. Through Deutsch, Co. provides high-performance connectors. Through Materis, Co. provides specialty chemicals for construction.
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WENDEL (FR), a company active in the Business Support Services industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date May 14, 2019, the closing price was EUR 120.30 and its expected value was estimated at EUR 117.79.
Rémunérations Pour la politique de rémunération 2019 de ses dirigeants, la société propose de porter à 3 ans la durée de mesure de la condition de performance des options, ce dont Proxinvest la félicite. Ce changement significatif positif est la raison pour laquelle Proxinvest soutient les résolutions 7 et 8. Nous encourageons toutefois la société à modifier les grilles d'acquisitions de 2 des critères de performance liés aux actions de performance puisque celles-ci permettent toujours l'acquisition en cas de performance inférieure à la médiane.
EU and UK Financials remain actionable Our outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains positive and we continue to expect higher equity prices going forward. Below we highlight several new developments which give us additional confidence in our outlook, including but not limited to continued price and RS improvements for UK/European Financials. • Actionable Sector: Financials. Today's stock recommendations go beyond UK and European Financials, however these regions are the primary focus due to a plethora of attractive setups. In today's report we reiterate our 3/21...
Item 3: Approve the Remuneration ReportThe remuneration structure is satisfactory, though accelerated vesting is possible. Potential and actual total variable remuneration exceed guidelines, but not very much. They are moderate in comparison with UK market practice. Overall, the quantum during the year was not excessive. We recommend shareholders vote in favor.
Item 3: Approve the Remuneration Report The structure is weighted more heavily towards short-term performance. One of the performance metrics for the LTI is the payment of sustainable dividends, which is not considered appropriate as executives can potentially influence the payout level. The LTI also includes relative TSR as a performance metric. Nevertheless, the quantum is not excessive and even maximum potential amounts are moderate. On balance, we recommend shareholders vote in favor. Item 4: Approve the Remuneration PolicyThe main concern with the Company's remuneration policy is that pa...
Item 2: Approve the Remuneration ReportThe remuneration structure is unsatisfactory. The main concern at the Company is that the potential maximum incentive pay including the bonus, matching shares on the deferred portion of the bonus and the LTI amounts to 1000% of base salary, which is considered grossly excessive. Actual incentive pay during the year was1.6 times the ECGS limit. Furthermore, variable remuneration is overly reliant on a single performance metric, benchmark profit before tax. A second performance criteria will be used in the coming year. We note that the Company has adjusted ...
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