Renault – AGM 19 June 2020
ECGS draws shareholders' attention to several points.
First of all, the changes of officers. On October 11, 2019, Thierry Bolloré stepped down as Chief Executive Officer. He was replaced by Clotilde Delbos, taking over as interim Chief Executive Officer.
On February 13, 2020, the Board of Directors decided on the compensation policy for the new Chief Executive Officer, Luca de Meo, whose term of office as Chief Executive Officer will be effective on July 1, 2020.
This new policy is not in line with ECGS'guidelines. Indeed, ECGS noted an increase in the fixed remuneration, which becomes excessive, a guaranteed minimum bonus, an increase in the maximum bonus, excessive post-employment commitments.
It should also be noted that the company proposed a dividend but that following the economic crisis linked to the Covid-19 pandemic, the company decided not to distribute a dividend. This approach is appreciated and is perfectly in line with the vision of long-term responsible investor developed by the engagement campaign of our ECGS partnership in 2020 on sustainable distribution.
Furthermore, the company has decided to reduce the remuneration of its executive officers and directors.
In addition, according to media sources, Renault could benefit from a loan of nearly €5 billion guaranteed by the French government.
()
Finally, on May 29, 2020, the company communicated a plan to reduce fixed costs by more than €2 billion over 3 years. This plan presents, among other things: "This workforce adjustment project would be based on retraining measures, internal mobility and voluntary departures. It would be spread over three years and would concern nearly 4,600 posts in France, to which would be added the reduction of more than 10,000 other posts in the rest of the world". ()
Renault is an automobile manufacturer. Co.'s activities have been organized into two main business sectors, in more than 120 countries: Automotive and Sales Financing. Co. designs, develops and sells passenger cars and light commercial vehicles. Following the acquisition of Romanian carmaker Dacia and Samsung Motors' operating assets in South Korea, Co. has three automotive brands: Renault, Dacia and Samsung. RCI Banque, Co.'s captive financing arm, finances sales of the Renault, Renault Samsung Motors (RSM) and Dacia brands, and, in Europe, the Nissan and Infiniti brands. In addition to these two activities, Co. has equity investments in the following two companies: Nissan and AVTOVAZ.
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.