Proxy Report - 02/05/2018
ITEM 9: The company did not improve its disclosure which remains significantly below market practices. This does not allow shareholders to understand amounts granted regarding performance achieved. For example, Revenue grew by 5.6% at constant exchange rates; but the company estimates that it was achieved “below the target” while Business Net Income decreased by 0.4% and the company estimates that it was achieved “above the target”. This lack of disclosure while the CEO, Mr Brandicourt, received €9.75 M in 2017 is unacceptable.
ITEM 4: Mr Brandicourt’s mandate is up for renewal. Although we highly appreciate that the company kept the functions of Chairman and CEO separated, we highly regret the poor personal investment of the CEO in Sanofi’s shares (only 6% of his fixed remuneration). Had he personally invested (as opposed to simply waiting his performance shares to vest), he would also had to endure the 25%-decrease of the share price. Hence, his interests would have been aligned with that of the shareholders. Starting in 2016, as announced in 2013, if an executive does not hold shares amounting to at least six months of fixed salary, his mandate renewal will be opposed. Hence, we do not support his mandate renewal.
Sanofi is an integrated, global healthcare company focused on patient needs and engaged in the research, development, manufacture and marketing of healthcare products. Two segments make up Co.'s business: Pharmaceuticals and Vaccines. The Pharmaceuticals segment covers research, development, production and marketing of medicines, consisting of flagship products, plus a broad range of prescription medicines, generic medicines, and consumer health products. The Vaccines segment includes research, development, production and marketing of vaccines in five areas: pediatric vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines.
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.