Neste - AGM 30 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. Although we have some disclosure related concerns, Neste's executive compensation is considered to be fair in the year under review. The annual base salary is in line with Finnish market practice. The outcome of the STI is relatively modest, which is in line with the deteriorated company performance. Total variable remuneration is predominantly LT oriented, with a maximum LTI (100% of annual base salary) in excess of the STI (40% of annual base salary), and we furthermore note that total variable salary (i.e. ST and LT) cannot exceed 120% of annual base salary in any given financial year. In addition, we welcome the inclusion of the two ESG (safety) targets under the Company’s STI. Accordingly, we recommend to vote FOR.
Under ITEM 15, based on a tender process, a change of auditor is proposed. We favour a regular change of auditor (our guidelines stipulate a term of maximum 20 years (10 + 10 years, if a tender is undertaken) and deem the proposed change sufficiently motivated. Accordingly, we recommend to vote FOR.
Finally, we note that the decisions of the AGM 2020 were taken without a written vote, and that consequently, the voting results are not disclosed. As a matter of principle, we believe that, as a minimum, the voting results cast in advance could be diclosed.
Neste Oyjis a refining and marketing company focused on advanced, cleaner traffic fuels. Co.'s refineries and other production facilities, together with its network of service stations and other retail outlets in Finland and the Baltic Rim area, supply both domestic and export markets with gasoline, diesel fuel, aviation fuel, marine fuel, heating oil, heavy fuel oil, base oil, lubricant, traffic fuel component, solvent, liquefied petroleum gas, bitumen and NExBTL renewable diesel based on Co.'s proprietary technology. Co.'s supply and distribution chain includes a tanker fleet for carrying crude oil and other feedstock imports and refined product exports.
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