December 1, 2022 | Editor: Martin Wennerström
Intel changes performance metrics for CEO’s new-hire award
Intel has amended the new hire agreement for CEO Pat Gelsinger by increasing the share price growth target from 30% to 50%, extending the post-grant vesting period from three to five years, and increasing the number of trading days during which target prices need to be maintained from 30 to 90 days. The decision comes after more than half of votes cast by shareholders at the 2022 AGM opposed the company’s remuneration report. The share price will therefore need to reach and hold USD 74.47 (rather than the previous USD 64.54) for Gelsinger to receive an award, as compared the USD 61.81 share price at Gelsinger’s appointment in February 2021 and USD 28.96 share price at the time of writing.
The Register| Portland Business Journal | Oregon Live |
Switzerland mandates climate-related risk disclosure
Starting in 2024, Swiss companies, banks and insurers with 500 or more employees and more than CHF 20 million in assets or more than CHF 40 million in turnover will be required to disclose climate-related risks. The Swiss ordinance on climate disclosure makes it compulsory for companies to implement the recommendations of the “Task Force on Climate-related Financial Disclosures,” relating to disclosure on governance, strategy, risk management and key figures and targets. The reporting will need to provide clear and comparable information on climate-related financial risks, environmental impact of business activities, as well as GHG emissions targets and implementation plans. The ordinance will come into force in January 2024.
ESG Today | Swiss Gov't | XBRL |
Uniper to be nationalized by year end
German utility Uniper has announced that the size of its government bailout will be EUR 25 billion more than previous communicated, bringing the total cost to EUR 53 billion. The increase had been awaited following a decision by the German federal government to abandon a gas levy that would have passed increasing costs onto consumers. The funding, which will be formally voted on at a December 19 EGM, consists of a EUR 8.6 billion issuance followed by an authorization to conduct additional issuances totaling EUR 25 billion. The government will, following the issuance as well as its buyout of former major shareholder Fortum’s stake, own over 99% of Uniper.
Reuters (1) | Reuters (2) | Barron's | BMWK | Energy Connects | Uniper |
Bob Iger returns as Disney CEO following two-year absence
Former CEO Robert Iger will replace Robert Chapek as chief executive of the company. Iger had selected Chapek to succeed him as CEO in 2020. According to a regulatory filing, Chapek was terminated “without cause” and is entitled to separation benefits. Media reports expect that Chapek will leave with a “golden parachute” estimated at more than USD 23 million. Earlier this year the board of directors endorsed Chapek and renewed his contract for a three-year period. Iger has a two-year mandate, with a base salary of USD 1 million, an annual incentive with a target value of 100% of base pay and an LTI with a target value of USD 25 million.
Investopedia | Reuters | CNN |
Governance in Brief – June 1, 2023
Citigroup to IPO Banamex after Mexican gov’t interventions hamper sales deal Citigroup has announced a plan to spin off its Mexican business, Banamex, after a failure to sell the unit to conglomerate Grupo Mexico. Citigroup had been in talks with German Larrea, CEO and Chairman of Grupo Mexico, for over a year in an attempt to orchestrate the sale of the bank, which was first announced at the start of 2022.
Governance in Brief – May 25, 2023
Activist investor pushes for leadership and strategy changes at NRG Energy Activist investor Elliott Investment Management has disclosed a 13% stake in the US-based NRG Energy and called for leadership and operational changes at the company to remedy its “meaningful underperformance.” The investor urged NRG to add independent directors with experience in the power and energy sector to its board, noting that it has already identified five executives to guide the operational and strategic changes.
Governance in Brief – May 19, 2023
EU court sides with Ryanair on Lufthansa’s 2020 bailout. The EU General Court, the second-highest court in the EU, has annulled the European Commission’s decision on the approval of state bailout for Deutsche Lufthansa prompted by the 2020 pandemic. The judgment found the EC erroneously considered that Lufthansa could not obtain financing on the markets and failed to ask for the implementation of an incentive mechanism for the airline to buy back the German Government’s stake.
Governance in Brief – May 11, 2023
JPMorgan Chase takes over failed First Republic Bank JPMorgan Chase has acquired the assets and deposits of First Republic Bank after California authorities seized and auctioned the troubled lender. The Federal Deposit Insurance Corporation (“FDIC”), an independent governmental agency established to maintain financial stability through the insurance of banks’ deposits, took possession of First Republic Bank after the lender suffered a severe liquidity crisis following the failure of SVB and Signature Bank earlier in March.