Expert Corporate Governance Service (ECGS)
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Aggreko - AGM 25 April 2019

Item 2: Approve the Remuneration Report

The structure is considered unsatisfactory.  Although the reduction in the maximum LTI award from 300% to 250% reduces the quantum to a more acceptable level for the UK market, variable remuneration is still overly determined by EPS.  It is not considered best practice to rely on EPS as it can potentially be influenced by executives.  We recommend shareholders oppose.

 Item 18: Authorise Share Repurchases

EPS is used as a performance condition.  It accounts for 80% of the bonus and 50% of the LTI, which is above our limit of 50% of variable remuneration.

We regret that the company has adopted EPS as a performance metric accounting for a percentage of variable remuneration in excess of ECGS guidelines and the Company has not explicitly indicated whether its performance plans will be adjusted for the impact of the repurchase program.  Accordingly, we recommend that shareholders oppose this resolution.

Aggreko PLC

Aggreko is a provider of modular, mobile energy services and related solutions. Co. is organized into two business units: Rental Solutions and Power Solutions. The Rental Solutions segment provides power, heating and cooling to customers in developed markets. This segment includes Co.'s businesses in North America, Europe, Australia Pacific and Mexico. The Power Solutions segment provides power, heating and cooling to emerging markets. This segment includes all Co.'s other businesses around the world.


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