Essity April 04th, 2019
In general, Essity is in compliance with the Swedish regulations relating to the organisation and procedures of the AGM.
Under ITEMS 12.1-12.9, the (re-)election of the board of directors is proposed.In light of concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election of: Mr. Pär Boman (ITEM 12.2) and Ms. Annemarie Gardshol (ITEM 12.4).
Under ITEM 13, the nomination committee proposes to re-appoint Mr. Pär Boman as Chairman of the board of directors. As already mentioned above, ECGS has various concerns over his re-appointment and therefore does not support his re-election as board Chairman either. Accordingly, ECGS recommends to vote OPPOSE.
Finally, under ITEM 15, the board of directors seeks approval of the Company's executive remuneration guidelines. Essity's LTIP consists of performance cash of which half of the award has to be invested in the Company's shares. ECGS is not in favour of 'cash-based' LT incentives and furthermore notes that there is no disclosure to suggest that a share-ownership requirement has been established for members of the executive management. As a matter of principle, ECGS strongly favours such an ownership requirement as it serves to align the interest of members of the executive management with those of the shareholders. As no such alignment is demonstrated, ECGS recommends to vote OPPOSE.
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