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.
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.
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