Electrolux - EGM 03 November 2020
ECGS notes 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.
In general, Electrolux is in compliance with the Swedish regulations relating to the organization and procedures of the Extraordinary General Meeting.
Under ITEM 6 the board of directors proposes to distribute an extraordinary dividend of SEK 7.00 per share. ECGS notes that the Company decided to refrain from dividend payments at the AGM 2020 in view of the Covid-19 pandemic. As such it is proposed to reduce the aggregate dividend per share from SEK 8.50 to SEK 7.00 (-18%). The (proposed) dividend is covered by FCF as well as in accordance with the Company¶s dividend policy. Alternatively, ECGS notes that Electrolux¶ results have been significantly impacted by the Covid-19 pandemic. Total revenues from continuing operations (-12%), operating income (-95%) and net income from continuing operations (-100%) all substantially deteriorated up to and including Q2 2020. ECGS furthermore notes that the Company has a relatively low solvency (equity ratio of 24%) and is only profitable in the FY 2020 (up to Q2) because of the distribution of its professional appliances business during the first quarter of 2020. In view of the recent events relating to Covid-19, ECGS would be in favour of postponing decisions on the dividend, reductions or suspensions that would allow companies to avoid liquidity risks or not generate risk for their survival. Therefore, ECGS recommends to vote OPPOSE.
Finally, under ITEM 7, the board of directors seeks approval of a LT incentive plan. In view of an insufficiently long performance period of the large majority of performance conditions attached (80%), ECGS recommends to vote OPPOSE.
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.