Report
Expert Corporate Governance Service (ECGS)
EUR 1000.00 For Business Accounts Only

Danske Bank – AGM 9 june 2020

In general, Danske Bank is in compliance with the Danish regulations relating to organisation and procedures of the Annual General Meeting.

 

Under ITEM 4f it is proposed to re-appoint Ms. Carol Sergeant as Vice Chairman of the board of directors. Although she is considered independent, ECGS does NOT approve of the re-appointment of any board members who were part of the board of directors at the time of the money laundering scandal in Estonia. Accordingly, ECGS recommends to vote OPPOSE.

 

Under ITEM 7 authorisation is sought to repurchase own shares. Although the authority requested would meet its guidelines, ECGS considers that it is currently not the right moment to proceed to a new share buyback programme in view of the recent events relating to Covid-19. Accordingly, ECGS recommends to vote OPPOSE.

 

Under ITEM 8 approval is sought to establish the remuneration of the board of directors. ECGS notes that it is proposed to increase the (base) fees of the board of directors by somewhere between 22.5% (Members) and 65% (Vice Chairman). Although ECGS acknowledges the motivation provided for the proposed changes, it does NOT approve of increases of such magnitude. Accordingly, ECGS recommends to vote OPPOSE.

 

ITEMS 11-15 are proposals made by shareholders. ECGS recommends to vote FOR ITEMS 11, 13.2, 13.3 and 15.10, but does NOT support the other proposals.

 

Finally, the FY 2018 was an annus horribilis for Danske Bank in many aspects. The Company was hit by a money laundering scandal at its Estonian branch and admitted that it did too little too late both in terms of closing the portfolio down and realising the seriousness and scope of the problems. As of the date of this report, various investigations by the competent authorities are currently ongoing. Although it is not yet possible to reliably estimate the timing and amount of any potential settlement or fines, the consequences of the scandal are likely to be material.

Underlying
Danske Bank A/S

Danske Bank is a diversified financial services firm. Through its subsidiaries, Co.'s activities include the provision of banking, mortgage finance, insurance, real estate brokerage, asset masnagement and trading in fixed income products, foreign exchange and equities. Co. operates international retail bank operations in 15 countries, with an emphasis in the Nordic region. Co. divides its operations into five segments: Banking Activities, Danske Markets, Danske Capital, Danica Pension and Other Activities. As of Dec 31 2011, Co. had total assets of DKK3,424,403,000,000 and total deposits of DKK848,994,000,000.

Provider
Proxinvest
Proxinvest

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. 

Analysts
Expert Corporate Governance Service (ECGS)

Other Reports on these Companies
Other Reports from Proxinvest
Other Reports from these Analysts

ResearchPool Subscriptions

Get the most out of your insights

Get in touch