Informa - EGM 23 December 2020
Update from 11 December 2020
On 10 December 2020, Informa published a notice of the EGM extension date and issued an amended circular which included an underpin to the Informa Equity Revitalisation Plan. Informa tries to convince shareholders to approve the executive LTIP without performance conditions.
The new restricted share plan will be subject to the share price underpin called “Shareholder Value Underpin”. We welcome this decision, however, it is not enough for ECGS to support an executive share plan without performance conditions.
The current Informa’s share price is at the level of 2016 with a recovering trend from its fall due to Covid-19 pandemic. It is hard to predict further development of the situation, nevertheless, this underpin for three tranches of the three-year plan with additional 2 years to vest means that executive will gain in full even if the share price does not grow in the following eight years. Bearing in mind the time value of money concept, the executive will receive a total grant while shareholders’ value will be diminished.
ECGS opposes restricted share grants to executive directors since we expect long-term performance conditions to be attached to any share award. We also have serious concerns about the probable windfall gain encouraged by the presented plan rules.
Informa is a holding company. Through its subsidiaries, Co. is engaged in Global Exhibitions, which organises transaction-oriented Exhibitions and trade shows, providing buyers and sellers across different industries and communities with a platform to meet face to face, build relationships and conduct business; Business Intelligence, which provides specialist data, intelligence and insight to businesses; Academic Publishing, which publishes peer-reviewed scholarly research and specialist reference-led academic content; Knowledge and Networking, which organises content-driven events and programmes that provide a platform for communities to meet, network and share knowledge.
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