Report
Expert Corporate Governance Service (ECGS)
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Alstom - AGM 08 July 2020

Dividend:

Due to the current crisis of Covid-19, "In the context of the current crisis, and in a spirit of responsibility towards all its stakeholders", the Board of Directors decided as an exceptional measure not to propose a dividend distribution after paying €5.5 per share last year. In view of the recent events relating to Covid-19, ECGS is in favour of postponing decisions on the dividend, reductions or suspensions that would allow companies to avoid liquidity risks or not generate risk for their survival. (resolution 3).

 

Remuneration:

The company's disclosure on the compensation is satisfactory. STI and LTI seem in line with performance achieved. For the first time, vesting of performance shares is not possible in case of underperformance for the TSR criterion. Amounts are acceptable. The remuneration policy for 2020-21 will remain unchanged except a discretionary power' Board of Directors when applying the compensation policy so as to ensure that the Chairman-CEO’s actual annual variable compensation properly reflects the Group’s performance. This change seems acceptable, as shareholders can still oppose variable compensation next year in case of lack of link with performance (ex-post vote) (resolutions 8 and 9).

Underlying
Alstom SA

Alstom serves the power generation and transmission markets, and rail transport market. Co.'s activities are divided into four sectors: the Thermal Power Sector (Co. offers power generation solutions using gas or coal to services including plant modernization, maintenance and operational support); the Renewable Power sector offers EPC solutions, turbines and generators, control equipment and maintenance for Hydropower and Wind power activities; the Grid Sector designs and manufactures equipment and turnkey solutions to manage power grids and transmit electricity from the power plant to the large end-user; and the Transport Sector provides rail transport products, systems and services.

Provider
Proxinvest
Proxinvest

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Expert Corporate Governance Service (ECGS)

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