Rentokil Initial – AGM 13 May 2020
Item 2: Remuneration report
We had concerns about the substantial salary increase (CEO +14.3%) undertaken and announced before the Covid-19 breakdown. ECGS considers that it is not the right moment to proceed to any salary review. Nevertheless, we commend the reaction of the company on the deterioration of the Covid-19 situation. In the immediate term, the Group has taken a number of cost saving measures to protect the profitability and cash generation of the business and amongst them pay cuts. The pay cuts have been made across the board and all senior management grades, with bonus schemes cancelled and the 2020 LTIP grant postponed. Reductions in other employment costs are being evaluated.
ECGS appreciates that Rentokil Initial has postponed any incentive award, especially LTIPs which can benefit from current low share prices.
Item 16: Share buyback
In view of the recent events relating to Covid-19, ECGS considers that it is not appropriate to proceed to a new share buyback programme, especially when the Company cancelled the final dividend distribution.
Rentokil Initial is a holding company. Through its subsidiaries, Co. provides services that include pest control, hygiene and workwear, as well as a range of other services including plants, medical services, property care and hygiene. Co.'s businesses include: Pest Control, which consists of Rentokil Pest Control, a commercial pest control company; Hygiene, which consists of Initial Hygiene, a hygiene services company; Workwear, which consists of Initial Workwear, a provider of workwear services across the four main continental European markets of France, Germany, Belgium and the Netherlands; and Other, which consists of Ambius, an interior landscaping business.
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