SEB – AGM 19 May 2020
DIVIDEND
Due to the Covid-19 crisis, the dividend, which was initially expected to be 2.26 € per share compared to 2.14 € last year, has been reduced and will amount to 1.43 € per share. This decision seems reasonable under the current circumstances (resolution 3).
GOVERNANCE
The Board is too large with 17 members. The shareholder' agreement between Venelle Investissement and Généraction is over-represented at the Board (41.2% of Board members for 32.14% of the capital). The members of the Board are almost all French since Seb has 30 plants abroad for a total of 42 and 67% of sales are realized outside Western Europe.
It is proposed to re-elect Thierry de La Tour d'Artaise (65) as a director for a four-year term. He is Chairman-CEO of Seb. Despite the good stock market performance, we regret strongly the combination of Chairman and CEO functions, the lack of counter-powers and the lack of information about succession process. Therefore, we recommend to oppose (resolution 4).
REMUNERATION
In the context of the Covid-19 crisis, executive officers will reduce their compensation paid in 2020 according to the recommendation issued by AFEP on March 29, 2020 (25% reduction, pro rata to the duration of applied short-time working measures) and the Board of directors decided to reduce director fees to be paid in 2020 in the same proportion.However, the compensation of the Chairman-CEO remains very high and the amounts are close to those of a CAC 40 company executives. In addition, the transparency continue to be very insufficient, particularly with regard to the performance conditions. No improvements are made to the remuneration policy. The absence of changes is regrettable since the similar resolution had only received 80.46% approval in 2019 (resolutions 8 to 12).
SEB is engaged in the design, manufacture and marketing of cookware and small household appliances such as pressure cookers, irons, coffeemakers, deep fryers, toasters, kitchen utensils, breadmakers, mixers, blenders, bathroom scales, vacuum cleaners, fans, heaters, air conditioners and food processors. Co.'s products fall into eight categories: Home comfort, Home care, Food preparation, Linen care, Personal care business, Cookware, Electrical cooking and Beverage preparation. Co.'s brands are All-Clad, Krups, Lagostina, Moulinex, Rowenta, Tefal, Calor/Seb, T-fal/Mirro/WearEver/AirBake/Regal, Arno/ Panex//Rochedo/Penedo/Clock/Samurai/Imusa/Umco, Supor, AsiaVina and Maharaja Whiteline.
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