Huhtamaki – AGM 29 April 2020
In general, Huhtamäki is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting.
Under ITEM 10 the board of directors seeks approval of the Company's executive remuneration policy. ECGS notes that, following the entry into force of the EU Shareholders'Rights Directive (SRD II), this is the first time that Huhtamäki puts its executive remuneration policy to a vote. In general, ECGS deems the overall level of transparency of the policy in line with Finnish standards. On the other hand, ECGS notes that the maximum total variable salary, corresponding to 400% of annual base salary, exceeds the threshold of 300% under its guidelines. Accordingly, ECGS recommends to vote OPPOSE.
Under ITEM 16 authorisation is sought to repurchase own shares. Although the authority requested would meet its guidelines, ECGS considers that it is currently not the right moment to proceed to a new share buyback programme in view of the recent events relating to Covid-19. Accordingly, ECGS recommends to vote OPPOSE.
Finally, under ITEM 17, authority is sought to issue shares. The board shall be entitled to waive shareholders'pre-emptive rights and the authorisation will remain in effect until next AGM, however no later than June 30, 2021. In aggregate, the authority requested is limited to 13% of Huhtamaki's share capital and thereby exceeds ECGS'guidelines. Accordingly, ECGS recommends to vote OPPOSE.
Huhtamaki is engaged in the packaging for food and drink. Co. and its subsidiaries have the following four segments: Foodservice Europe-Asia-Oceania, which provides single and double wall paper cups, paper and plastic plates and bowls, plastic cups, cutlery, and food-to-go packaging; North America, which serves local markets in North America with Chinet® disposable tableware products, foodservice packaging products, as well as ice cream containers and other consumer goods packaging products; Flexible Packaging, which produces packaging and labels; and Molded Fiber, which uses recycled fiber to make egg cartons and trays, fruit trays and cup carriers, as well as other protective packaging.
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.