Intertek Group - AGM 23 May 2019
Item 2: Approve the Remuneration Policy
The changes proposed to the Remuneration Policy are acceptable given ECGS guidelines. However, there are ongoing concerns with the remuneration policy. The maximum bonus exceeds guidelines, accelerated vesting is possible and benefits are excessive. The LTI is overly reliant on EPS. Over-reliance on EPS could result in management making decisions to maximize profits for the short term, often at the expense of long term shareholder value. Accordingly, we recommend that shareholders oppose this resolution.
Item 3: Approve the Remuneration Report
The structure is unsatisfactory. Pay is only slightly aligned toward the long-term. The variable remuneration is just above ECGS guidelines for the year. As we have expressed our concerns over the remuneration policy in the previous item and the quantum for the year is moderate, we recommend shareholders vote in favor.
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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