Electrolux - AGM 25 March 2021
We note that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person.
Under ITEMS 12a-12h the (re-)election of the board of directors is proposed. In view of concerns over aggregate time commitments we recommend to vote OPPOSE to the (re-)election of Messrs. Henrik Henriksson (ITEM 12c) and Fredrik Persson (ITEM 12f).
Under ITEM 14 approval of the Company's first remuneration report is sought. Although we strongly welcome the inclusion of ESG targets under the Company’s LTI, we note that the performance period of said LTI is 1 year. We do NOT consider a performance period of only 1 year to be sufficiently long enough. Consequently, we are missing an actual LT component (with a performance period of at least 3 years) under the Company’s executive compensation package. Accordingly, we recommend to vote OPPOSE.
Under ITEM 15 approval of a share-related incentive plan is sought. In view of an insufficiently long performance period of the large majority of performance conditions attached to the plan (80% weighting), we recommend to vote OPPOSE.
Finally, we note that, unlike best practice, the voting results of the AGM 2020 are not disclosed. We urge the Company to do so next year.
AB Electrolux sells home appliance for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances under brands such as Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine. Co. has six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; and Small Appliances, which comprise the products for consumer durables market; and Professional products. Co.'s professional products include food-service equipment for hotels, restaurants and institutions, as well as laundry equipment.
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