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

Diageo - AGM 28 September 2020

Elections to the Board

Two Non-Executive Directors will join the Board. Sir John Manzoni was appointed Non-Executive Director from 1 October 2020 and Valérie Chapoulaud-Floquet from 1 January 2021. While their appointment has been announced by Diageo, their election is not subject to shareholder approval at the 2020 AGM, which we regret strongly. We do not consider such practice being in line with the best corporate standards.

Items 4 and 21: Dividend and Share buybacks

In view of the recent events relating to Covid-19, ECGS considers that it is not the right moment to increase dividend and to proceed to a new share buyback programme especially when the Company has raised debt to finance it and reports a dramatical decline in profits and FCF.

Item 23: Adopt new Articles

We regret that our concerns regarding the payment of dividends in kind and the increase in the Directors' feesncap lead us to recommend opposition.

Underlying
Diageo plc

Diageo is a premium drinks business based in the United Kingdom. Co. is engaged in producing and distributing spirits, beer and wine. Co.'s operations include producing, distilling, brewing, bottling, packaging, distributing, developing and marketing of a range of brands. The brands that it produces and distributes include Smirnoff vodka, Johnnie Walker scotch whisky, Baileys Original Irish Cream liqueur, Captain Morgan rum, J&B scotch whisky, Tanqueray gin and Guinness stout. In addition, Co. also has the distribution rights for the Jose Cuervo tequila brands in North America and other countries.

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

ResearchPool Subscriptions

Get the most out of your insights

Get in touch