Report
Expert Corporate Governance Service (ECGS)
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Stora Enso - AGM 19 March 2020

In general, Stora Enso is in compliance with the Finnish regulations relating to the organisation and procedures of the Annual General Meeting.

Under ITEM 10 the board of directors requests an advisory vote on the Company’s executive remuneration policy. ECGS notes that this is the first time that Stora Enso puts its executive remuneration policy to a vote, which it strongly welcomes. Although ECGS has some concerns with regard to Stora Enso’s remuneration policy, the proposed structure is basically in line with its guidelines. Accordingly, ECGS recommends to vote FOR.

Under ITEM 11 the shareholders nomination board proposes to increase the remuneration of the board of directors by somewhere between 2% and 3%. As a matter of principle, ECGS believes that the fees of the board of directors should NOT increase year after year. ECGS furthermore deems the current fees of the board of directors already at the upper level of Finnish market practice for a company with the size and complexity of Stora Enso and therefore does not approve of any increases without adequate justification. As the proposal is not adequately justified (i.e. not motivated at all), ECGS recommends to vote OPPOSE.

There are no further peculiarities.

Underlying
Stora Enso Oyj Class R

Stora Enso is a provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Co.'s reporting segments are: Consumer Board, which develops and provides consumer packaging boards for printing and packaging applications; Packaging Solutions, which develops fibre-based packaging; Biomaterials, which provides a variety of pulp grades for paper, board, tissue, textile and hygiene product producers; Wood Products, which provides wood-based solutions for building and housing; Paper, which provides paper solutions for print media and office use; as well as Other, which includes Co.'s shareholding in the energy company, Pohjolan Voima.

Provider
Proxinvest
Proxinvest

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.

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Expert Corporate Governance Service (ECGS)

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