Avast – AGM 21 May 2020
Item 2: Remuneration report
On 2 July 2019, Mr Ondrej Vlcek, the new CEO, notified the Board of his intention to indefinitely waive his annual salary and bonus for a nominal annual salary of $1. He also notified the Board of his decision to donate 100% of his Board Directorsnfee ($100,000 per annum) to charity. These arrangements are in effect from 1 July 2019. He will continue to receive an annual LTIP award, up to 500% of his (waived) base salary. So, he will be incentivised only through existing long-term equity-based incentive arrangements and his 2% shareholding in Avast.
ECGS is not in favour of $1salaries and 100% at risk executive remuneration. Also, there may be concerns as to whether the LTIP targets as disclosed are sufficiently challenging and well balanced. There are multiple KPI metrics in place, however, the LTI excessively relies on the EPS (50%). The second criterion is Group adjusted revenue growth (50% weighting). The company does not use TSR or other relative metrics.
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