Intertek Group – AGM 21 May 2020
Item 2: Remuneration policy
Companies are required to submit the Remuneration Policy to a vote every three fiscal years. Intertek Group's Remuneration Policy was approved at the 2019 AGM by 97.7% of votes cast. Since then, the Committee has received feedback from investors in respect of the LTI performance metrics and proposes to amend them. EPS weight is reduced from 50% to 33% and TSR abandoned and replaced by ROIC and FCF, one-third each. As the previous performance metrics were detailed in the Remuneration Policy, the proposed change triggers a requirement for new shareholder approval at the 2020 AGM.
Rare case for the UK market in 2020: the CEO benefits from a pension contribution of 30%, which equals 6 times the wider workforce average (5%) and twice the current FTSE100 median (15%). It exceeds our acceptable maximum of 25% of salary. And the company does not announce any reduction.
Item 3: Remuneration report
The payout confirms the alignment between compensation and short-term performance. Though, the bonus potential is excessive. Vesting for share-based compensation schemes is sufficiently challenging. The quantum is also acceptable considering the group's size. However, we strongly object the pension benefit of the CEO, André Lacroix.
Intertek Group provides Assurance, Testing, Inspection and Certification (ATIC) services. Co.'s segments comprised of Products, Trade and Resources. Co.'s products-related division consists of business lines that are focused on quality and safety of physical components and products, as well reducing risk through assessing the operating process and quality management systems of its customers. Co.'s trade division consists of three Global business lines, Cargo & Analytical Assessment, Government & Trade Services, and Agriculture business. Co.'s resources division consists of two business lines, Industry Services, and minerals business.
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