Kone Corp - Annual General Meeting 02 March 2021
We note that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person.
Under ITEM 10 approval of the Company's first remuneration report is sought. In general, we consider the level of transparency of KONE’s remuneration report to be below Finnish standards. No specific performance criteria are disclosed regarding the STI and a significant part of the LTI is not disclosed (yet). We furthermore note that the performance period of the LTI is 1 year. We do NOT consider a performance period of only 1 year to be sufficiently long enough. Consequently, we are missing an actual LT component (with a performance period of at least 3 years) under the Company's executive remuneration policy. In view of the above concerns, we recommend to vote OPPOSE.
Under ITEM 11 approval of the remuneration of the board of directors is sought. We note that it is proposed to more than double the (base) fees of the board of directors. Although the (proposed) non-executive fees would be in line with Finnish market practice for a company with the size and complexity of KONE, we do not approve of such significant increases without adequate justification. In the latter respect, we note that the proposal is not further motivated. We furthermore note that the non-executive chairman of the board of directors, Mr. Antti Herlin, is entitled to an annual bonus on top of his already excessive base salary (EUR 468,488). In our view, non-executive directors should NOT be entitled to any variable payments to safeguard their independence from the company. In view of the above, we recommend to vote OPPOSE.
Under ITEM 13 the (re-)election of the board of directors is proposed. In view of insufficient independent representation on the board, we recommend to vote OPPOSE.
Finally, under ITEM 14, approval of the remuneration of the (external) auditor is sought. In view of the substantial amount of non-audit fees we recommend to vote OPPOSE.
KONE is an elevator and escalator industry group based in Finland. Co. is engaged in the provision of products and services for the installation, modernization and maintenance of elevators, escalators and automatic building doors. Co. provides its products and services throughout the entire lifecycle of the equipment, beginning from the installation of new equipment to the maintenance and modernization during their lifecycle and the full replacement of the equipment. Co.'s customers are active in industry segments such as residential, office, retail, public transportation, hotel, hospital, and marine.
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.