AVEVA - AGM 21 July 2020
In light of the UK Government’s current guidance on public gatherings, shareholders may be advised against or be prohibited from attending the AGM in person. AVEVA will communicate with shareholders before the AGM and provide further updates on Company’s website in the results center.
Elections to Board of Directors
Under ITEM 10, it is proposed to re-elect Philip Aiken, Chairman of the Board. ECGS has two concerns regarding Philip Aiken. First of all, as the Chairman of the Nomination Committee, he is considered responsible for the lack of gender diversity on board (22.2%). In addition, ECGS has serious concerns over aggregate time commitments as he is also the Chairman of Balfour Beatty plc (listed, UK) as well as a member of the boards of 4 other listed companies. Accordingly, we recommend to OPPOSE.
Directors’ Remuneration Policy
Under ITEM 3, the Company seeks shareholder approval of the Directors’ Remuneration Policy. The changes introduced by the Company are not satisfactory. Furthermore, 21% of shareholders voted against the remuneration report in 2019. Non-executive directors’ fees do not raise any concerns. As for the CEO, the maximum bonus opportunity is above our maximum of 150%. The maximum LTIP opportunity increased from 250% to 300%. Even if the base salary is below the comparison with the MSCI sector and country, as the maximum bonus exceeds 150% of the base salary, ECGS cannot accept that the LTIP be up to 300% (from 150%). In addition, the total remuneration the CEO could receive for 2020/21 and under the remuneration policy is excessive. Accordingly, we recommend to OPPOSE.
Aveva Group is a holding company. Through its subsidiaries, Co. is engaged in the licensing of the rights to use its software products directly to end users and to a lesser extent indirectly through resellers. Co.'s services consist primarily of consultancy, implementation services and training, and are performed under separate service arrangements. Co.'s products are most applicable in industries that include Oil and Gas, Marine, Power, Petrochemical and Chemical, and other markets such as AEC Fabrication, Paper and Pulp, Mining and Pharmaceuticals.
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