Governance in Brief – January 13, 2022

Posted on January 13, 2022

 

January 13, 2022 | Editor: Martin Wennerström

 

Alphabet increases executive remuneration

Alphabet is to raise the base salaries of four of its top executives, soon after informing employees that there would not be a company-wide salary adjustment to match rising inflation. Four top executives, CFO Ruth Porat, SVP Prabhakar Raghavan, Chief Business Officer Philipp Schindler, and Chief Legal Officer Kent Walker, will have their annual salaries increased from USD 650,000 to USD 1 million. They will also be eligible for a newly introduced USD 2 million “ESG bonus,” contingent on their contributions to the company’s social and environmental goals for 2022. LTI awards amounting to between USD 23 million and USD 35 million will be granted under the company’s 2021 stock plan. Under the new scheme, part of the award will be performance based, while more than half of the grants remain time based.

Business Insider | CNBC | SEC 

 

China Mobile lists on Shanghai exchange after US ban

China Mobile raised CNY 48.7 billion (USD 7.64 billion) in its Shanghai listing on January 5, closing the day at CNY 57.88, a 0.52% increase from its of CNY 57.58 offering price. The listing was China’s largest public offer in the past 10 years. On the same day, the company’s Hong Kong shares closed up 3.33%, after the carrier informed the Hong Kong exchange that it will proceed with plans to buy up to USD 13 billion of its shares. In January 2021, the NYSE delisted China Mobile following an executive order banning US investments in Chinese companies suspected of being owned or
controlled by the Chinese military.


Reuters | MarketWatch  | CNN

 

Draft project on EU’s sustainable finance taxonomy

The European Commission has published a draft proposal on green investment rules, listing nuclear power and natural gas projects as sustainable investments. However, such projects would have to proceed under “strict conditions” and with the goal of transitioning coal-based economies towards renewable energy sources. A French-led coalition, including several Eastern European countries, had pushed for nuclear power and gas to be classified as sustainable investments, while an opposing German-led coalition had raised concerns regarding emissions
and risks of environmental damage.

ECBBC | Reuters | Euractiv

 

Nutrien’s second CEO departure in eight months

Nutrien, the world’s largest fertilizer producer, announced the resignation of its interim CEO Mayo Schmidt on January 4. Schmidt had been appointed as interim CEO in April 2021, after former CEO Victor Magro unexpectedly resigned. Schmidt had previously served as the board’s Chairman since the company’s formation in 2018. A company spokesperson cited legal constraints on what the company can disclose regarding Schmidt’s departure. Nutrien appointed Ken Seitz, EVP and CEO of the firm’s potash business, as interim CEO. A new CEO appointment
is expected in the second half of 2022.

Financial Post | BNN | CNBC | Nutrien 

 

Recent Content

governance in brief

Governance in Brief – January 20, 2022

Toshiba investor requests shareholder vote on separation plan Singapore-based 3D Investment Partners (“3D”), Toshiba’s second-largest investor, has requested that the firm hold an EGM for shareholders to vote on its three-way separation plan originally announced in November 2021. 3D intends to vote against the proposal, but nevertheless wishes for this legally required vote to take place before additional plan- related expenses are incurred.

governance in brief

Governance in Brief – January 13, 2022

Alphabet increases executive remuneration Alphabet is to raise the base salaries of four of its top executives, soon after informing employees that there would not be a company-wide salary adjustment to match rising inflation. Four top executives, CFO Ruth Porat, SVP Prabhakar Raghavan, Chief Business Officer Philipp Schindler, and Chief Legal Officer Kent Walker, will have their annual salaries increased from USD 650,000 to USD 1 million.

governance in brief

Governance in Brief – January 06, 2022

Vivendi moves towards full control of Lagardère Vivendi has announced that it is acquiring activist investor Amber Capital’s 17.5% stake in French media and retail group Lagardère, at a price of EUR 24.10 per share. The transaction will result in Vivendi owning 45.1% of Lagardère, triggering a full bid for the company due to the 30% mandatory bid threshold having been breached. Accordingly, Vivendi plans to make an offer of EUR 24.10 per share for Lagardère’s remaining stake by February 2022. The deal marks the latest chapter in a multiyear dispute over Lagardère’s control and governance. Vivendi, today Lagardère’s largest shareholder, started building its stake in April 2020, as Lagardère’s managing partner Arnaud Lagardère clashed with Amber over the company’s governance structure. At the time, Lagardère was a French “partnership limited by shares,” which allowed Arnaud Lagardère to retain control despite only holding around 7% of capital. While Vivendi initially supported Arnaud Lagardère’s attempt to fend off a proxy contest from Amber at the 2020 AGM, it later joined Amber in requesting board representation. In April 2021, Arnaud Lagardère bowed to shareholder pressure by agreeing to convert Lagardère into a joint stock company.

governance in brief

Governance in Brief – December 16, 2021

Vivendi moves towards full control of Lagardère Vivendi has announced that it is acquiring activist investor Amber Capital’s 17.5% stake in French media and retail group Lagardère, at a price of EUR 24.10 per share. The transaction will result in Vivendi owning 45.1% of Lagardère, triggering a full bid for the company due to the 30% mandatory bid threshold having been breached. Accordingly, Vivendi plans to make an offer of EUR 24.10 per share for Lagardère’s remaining stake by February 2022. The deal marks the latest chapter in a multiyear dispute over Lagardère’s control and governance. Vivendi, today Lagardère’s largest shareholder, started building its stake in April 2020, as Lagardère’s managing partner Arnaud Lagardère clashed with Amber over the company’s governance structure. At the time, Lagardère was a French “partnership limited by shares,” which allowed Arnaud Lagardère to retain control despite only holding around 7% of capital. While Vivendi initially supported Arnaud Lagardère’s attempt to fend off a proxy contest from Amber at the 2020 AGM, it later joined Amber in requesting board representation. In April 2021, Arnaud Lagardère bowed to shareholder pressure by agreeing to convert Lagardère into a joint stock company.