Board structure
There are concerns over the composition of the Board. There is insufficient independent representation, an insufficient number of women on the Board, and directors appointed by shareholder agreement who do not stand for annual re-election.
Cobega SA (through Olive Partners) owns 35.03% of the share capital and has nominated six directors to the Board, pursuant to the shareholder agreement. Of particular concern is the Chairman Sol Daurella Comadrán, who was not considered independent on appointment to the Board as she is a representative of Olive Partners. She is not standing for election at the AGM, which does not meet UK best practice or ECGS guidelines.
Coca-Cola European Partners was formed in May 2016 from the merger of three companies: Coca-Cola Enterprises, Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke. There are three directors on the Board, Mr. Ingram, Mr. Watts and Mr. Johnson, who served on the Board of Coca-Cola Enterprises at the time of the merger. While the Company continues to consider them independent, ECGS does not as they now have an association with the Company, or its predecessors, of more than nine years.
Item 2: Approve the Remuneration Report
The structure is unsatisfactory. The main concern is the grossly excessive level of potential incentive pay, especially given that the performance modifier used for the bonus makes it difficult to fully assess the alignment of pay with performance. The quantum for the year was excessive. We recommend shareholders oppose.
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 :
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.