Banco Sabadell, March 27, 2019
In item 4.1, the Board proposed to re-appoint the executive Chairman Mr. José Oliu Creus. Although we recognize that the independent representation on the Board is sufficient (53% as per our guidelines and 60% according to the Company), ECGS believes that the Chairman should not carry executive responsibilities, as he is responsible for leadership of the Board and ensuring its effectiveness on all aspects of its role. As we continue to be concerned over the concentration of powers at the Bank, we recommend shareholders oppose.
In item 8, the Board asks the authorization to acquire own shares. The resolution also includes the authority to reduce the share capital. In our opinion, the authorization to reduce the share capital should always be subject to a separate vote of the General Meeting, and it should be clearly justified by the Board. Also taking into account that the maximum pricing of the repurchases exceeds the ECGS voting policy limit of 110% the market price, we recommend opposition.
In item 10, the Board proposes to replace the remuneration policy approved in 2018 by a new policy, which will apply for the 2019-2021 period (binding vote). We welcome the improvements proposed to the policy, through more robust malus and clawback conditions, the introduction of "gate conditions" and a clear cap on compensation for non-competition. However, we continue to be concerned over several aspects of Banco Sabadell's remuneration policy: excessive pension contributions, excessive fixed remuneration of the Chairman and variable remuneration more depending on annual than long-term results. Therefore, we recommend opposition. For the same reasons, we also recommend opposition to the advisory vote on the Annual Remuneration Report (item 11).
In item 12, the Board proposes to re-appoint PricewaterhouseCoopers ("PwC") as statutory auditor for fiscal year 2019. PwC has been the Group's auditor for the last 36 years (since 1982). We have serious concerns over the excessive tenure of the auditor, and we note that ECGS has expressed such concerns in all its reports covering Banco Sabadell. Therefore, we recommend opposition.
Banco de Sabadell is a bank holding company. Through its subsidiaries, Co. provides a range of banking and financial services in Spain and internationally. Co.'s activities include investment banking, private banking, portfolio management, mortgage loans, commercial loans and other financial products and services, deposits and international banking operations. Co. is also engaged in life insurance underwriting and brokerage. Additionally, Co. is engaged in capital property and development, as well as investing in environmental projects. As of Dec 31 2014, Co. had total assets of Euro163,345,673,000 and total customer deposits of Euro98,208,370,000.
Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.
Proxinvest main services are :
- Proxy reports
- Definition and monitoring of client customized voting guidelines
- Corporate Governance Data and Rating
- Thematic research
- Engagement support
Proxinvest has been a pioneer and champion of good corporate governance and has grown into a recognised expert in the field.
Proxinvest is independently-owned and only works for investors : Proxinvest does not provide consulting services to the companies it covers, mitigating related risks to its clients and ensuring the independence of our analysis. As a result Proxinvest is able to take a robust, independent, engaged and unconflicted view of the companies in which our clients invest.
As Managing Partner of Expert Corprate Governance Service Ltd (ECGS), Proxinvest has built a large network of corporate governance experts to support clients in corporate governance analysis worldwide.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.