Weir Group – AGM 28 April 2020
In general, Weir Group is in compliance with the British regulations relating to the organization and procedures of the Annual General Meeting.
Covid-19 and dividend update
On 26 March 2020, the Board announced that it is prudent at this stage to provide maximum flexibility and has therefore taken the decision to withdraw its recommendation to pay the final dividend of 30.35 pence per share. In addition, ECGS recommends to OPPOSE to the authorization to repurchase shares (ITEM 18).
ITEM 2: Directors' Remuneration Report
The Company seeks shareholder approval of the Directors'Remuneration Report. The quantum is not excessive. Performance shares (LTI) granted at 125% of base salary is below our 150% limit and total variable remuneration was 182% of the base salary which is also below our limit of 300%. Furthermore, total remuneration does not exceed the median of the Industrial Goods and Services sector in the MSCI. However, the remuneration structure is not acceptable. Qualitative criteria (personal/individual that cannot be quantified) for the STI represent 30%, exceeding our 20% limit and The LTI represents 45% of total variable compensation, which is not in our guidelines of minimum 50%. In addition, while moderate in terms of amounts, the LTI does not have performance conditions and, therefore, clearly does not serve to align pay with performance. Given the concerns over the structure of the remuneration, we recommend to OPPOSE.
The Weir Group is an engineering business. Co. is organized into three operating divisions: Minerals, which provides mill circuit technology and services as well as slurry handling equipment and associated aftermarket support for abrasive high wear applications; Oil & Gas, which provides pressure pumping and pressure control equipment and aftermarket spares and services, as well as equipment repairs, upgrades, certification and asset management, and field services; and Flow Control, which designs and manufactures valves and pumps, and also provides specialist support services to the global power generation, industrial, oil and gas and other aftermarket-orientated process industries.
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