Legal & General – AGM 21 May 2020
Item 2: Final dividend
The Bank of Englandns Prudential Regulation Authority required banks not to pay a dividend and gave more freedom to insurers, saying they oshould satisfy themselves that each distribution is prudent and consistent with their risk appetite.pLegal & General justified its decision saying that its solvency position remains "robust" notwithstanding significant market volatility.
Items 16 and 17: Remuneration
We have two majors concerns - the qualitative part of the bonus and total variable opportunity. As we outline in Item 17, the performance conditions for both STI and LTI are not sufficiently robust. Therefore, we cannot accept our higher level for the variable incentive.
Item 24: Share buybacks
In view of the recent events relating to Covid-19, ECGS considers that it is not the right moment to proceed to a new share buyback programme. In April 2020, Legal & General started an issue of credit notes up to £5bn. It has adopted EPS as a performance metric accounting for a percentage of variable remuneration in excess of ECGS guidelines without explicitly indicated whether its performance plans will be adjusted for the impact of the repurchase program.
Legal & General Group is a holding company. Through its subsidiaries, Co. operates in five business segments: Legal & General Retirement, which includes pension risk transfer business and individual retirement and lifetime mortgages; Legal & General Capital, which represents shareholder assets invested in direct investments, and traded and treasury assets; Legal & General Investment Management, which represents institutional and retail investment management and workplace savings businesses; Legal & General Insurance, which includes business in retail and group protection written in the U.K.; and General Insurance, which comprises short-term household and other personal insurance.
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.