Avior Capital Markets - Discovery Limited (10OD) Discovery | ESG | Time to refresh the Board

Report

Avior Capital Markets

Warwick Bam

Discovery | ESG | Time to refresh the Board

We rank Discovery's corporate governance as â€˜adequate' with a score of 2.84 out of 5. In our FY'19 ESG analysis and proxy voting recommendations we focus on:
- The balance of power on Discovery's Board considering the unusually high executive representation and low non-executive independence.
- The potential disconnect between executive remuneration and shareholder returns.

14/11/2019 16 EN

Underlying

Discovery Limited

Discovery is an integrated financial services organisation, focusing on health insurance, life assurance, investments and savings products, wellness and short-term insurance. Co. operates primarily through six subsidiaries which operate in South Africa: Discovery Health, Discovery Life, Discovery Collective Investments and Discovery Investment Services, Discovery Vitality and Discovery Insure. In the U.K., Co., via a subsidiary, Discovery Offshore Holdings Limited, has a joint venture with Prudential plc., the PruProtection group of companies, which provide health and life insurance products. In the U.S., The Vitality Group Inc. provides Vitality as a stand-alone product.

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ZAE000022331 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Warwick Bam

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Discovery | ESG | Time to refresh the Board

DISCOVERY sees an upgrade to Positive due to a better fundamental star rating

1 director sold

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

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