Demant - AGM 10 March 2020
In general, Demant (formerly William Demant Holding) is in compliance with the Danish regulations relating to the organisation and procedures of the Annual General Meeting.
In view of concerns over aggregate time commitments as well as other concerns, ECGS normally would have recommended to vote OPPOSE to the (re-)election of: Mr. Niels Björn Christiansen (ITEM 5a), Mr. Niels Jacobsen (ITEM 5b) and Mr. Lars Rasmussen (ITEM 5d). However, considering that the proxy card does not permit this, it recommends abstention instead.
Under ITEM 6, the board of directors proposes to re-appoint Deloitte as the Company’s external auditor. In view of the current term in office of the external auditor, ECGS normally would have recommended opposition. However, considering that the proxy card does not permit this, it recommends abstention instead.
Under ITEM 7c, the board of directors seeks approval of the Company's remuneration policy. ECGS regrets that no material changes to the policy are proposed since it does not approve of LTIPs that do not operate one or more challenging performance conditions. Accordingly, ECGS recommends to vote OPPOSE.
ECGS notes that Demant was hit by a severe IT incident in the year under review. Ransomware criminals intruded in the Company’s systems, its core IT infrastructure, which forced Demant to shut down its IT systems. For the group as a whole, the IT incident had a total negative financial impact of approximately DKK 550 million in 2019. For 2020, Demant expects a negative spill over effect of around DKK 100-150 million, primarily due to an impact on revenues.
William Demant Holding is a holding company. Through its subsidiaries, Co develops, manufactures and sells products and equipment designed to aid the hearing and communication of individuals. Co. focuses on four areas: Hearing Devices, Diagnostic Instruments, Hearing Implants and Personal Communication. Co.'s hearing devices include Oticon, Bernafon, Sonic, Phonic Ear, and FrontRow. Co.'s Hearing implant consist of Oticon Medical. Co.'s diagnostic instruments include Maico, Interacoustics, Amplivox, Grason-Stadler, MedRx, and Micromedical. Co.'s personal communication consists of Sennheiser Communications.
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