Georgeson Monthly Roundup

If this message is not displayed properly, click here please.

This message was forwarded to you? Subscribe to our mailing list now.

Georgeson Monthly Roundup - August 2020

Note: anchor links are not supported by all email clients which might lead to limited functionality.

Latest Georgeson publications

Georgeson opinion on El País - Two decades of corporate governance in Spain

In this opinion article, Carlos Sáez Gallego, Georgeson's Country Head for Spain, declared to El País, that in the last 20 years, Spain has witnessed an increasing number of initiatives related to good practices in corporate governance, promoted by the regulator and the pressure of various market players, which have helped Spanish listed companies to become more aligned with international corporate governance standards.

Read the full artcle here.

Shareholder Activism

The Financial Times reports that Edward Bramson renews activist campaign against Barclays’ investment bank: https://www.ft.com/content/febd924d-fccf-4525-bc6a-c65460d394c3 “Calls come despite surge in UK lender’s trading revenues during first half.”

Reuters reports that U.S. activists complain that virtual shareholder meetings let companies silence them: https://www.reuters.com/article/us-health-coronavirus-shareholdermeeting/u-s-activists-complain-that-virtual-shareholder-meetings-let-companies-silence-them-idUSKCN25E1FD. “This year, Danhof often found himself ignored, as companies held their shareholder meetings remotely during the COVID-19 pandemic, and asked investors to submit their questions online. Danhof said his questions on topics such as companies’ dealings with China or restrictions on financing gun makers were answered in only 13 of the 27 virtual shareholder meetings he and his representatives attended. “Companies used the crisis to set up question-and-answer sessions that are a joke,” Danhof said. His success rate was much higher when he could sit near a microphone or in a CEO’s line of sight during in-person gatherings, he added. Danhof is not alone. Investors faced obstacles, such as not being able to ask questions or not having their inquiries addressed, about 55% of the time in a sample of 88 virtual shareholder meetings held this year and reviewed in a Hebrew University of Jerusalem study published this month. The researchers did not provide such figures for in-person shareholder gatherings in previous years but estimated that this year’s virtual meetings had significantly increased the number of dodged questions.”

The Financial Times reports that Ethical CSR focus triggers hostile investor activism, study finds: https://www.ft.com/content/2ab06d51-bb6d-4f41-88cf-b220b2a4bcd1 “Companies that rank highly on corporate social responsibility measures are more likely to be the target of hedge fund activism, academic research has found. This is because some activist investors view CSR as a sign that a company is wasting money rather than focusing on shareholder returns, according to research […].”

Reuters reports that Commerzbank picks new chairman despite Cerberus opposition: https://www.reuters.com/article/us-commerzbank-chairman/commerzbank-picks-new-chairman-despite-cerberus-opposition-idUSKBN24Z0FW “Commerzbank ignored the concerns of its top investor Cerberus on Monday by electing Hans-Joerg Vetter, the retired chief of a German regional bank, as its new chairman.”
The Financial Times reports on Why Toshiba is fertile ground for conspiracy theories: https://www.ft.com/content/f209a57f-09bb-48aa-a8ce-dc88354ae7e7 “The annual meeting in July was litmus test of Japan’s tolerance of investor activism.”

Global

ISS Opens Global Policy Survey: https://www.issgovernance.com/iss-opens-global-policy-survey/. “This year, the survey is structured to include questions related to ISS policy guidance released earlier this year in response to the COVID-19 pandemic, AGM formats, and stakeholder expectations regarding compensation and adjustments to incentives. Additionally, it also elicits feedback on a global level related to climate change risk, sustainable development goals, auditors and audit committees, and racial and ethnic diversity on corporate boards. At regional and market levels, the survey topics include independent board chairs in the U.S.; pan-European executive and director remuneration; director independence classifications in Russia; board and corporate governance reports in the Middle East; auditor fees in Sub-Saharan Africa; board independence, capital misallocation tied to cross-shareholdings, and director elections in Japan; director independence related to tenure in India; and material governance failures in Korea.” See the full survey here: https://www.issgovernance.com/file/publications/iss-2020-benchmark-policy-survey.pdf. The survey deadline has been extended and will close on August 28, at 5pm ET.
The Financial Times argues that The dubious appeal of ESG investing is for dupes only: https://www.ft.com/content/e9f00cb2-3cd8-499e-9e8a-dd837f94657e “Stakeholder capitalism should also be viewed suspiciously by anyone seeking real change.”
The Financial Times reports that ESG screens provided no protection in virus sell-off, says study: https://www.ft.com/content/330b3b61-ab53-43be-ad71-11afb0e5f45b “Analysis by Marty Fridson likely to add fuel to debate between supporters and detractors.”
Bloomberg reports that Private Equity’s Biggest Critic Sounds Off With His Final Warning: https://www.bloomberg.com/news/articles/2020-07-23/private-equity-s-big-returns-aren-t-what-they-seem-academic-says “When University of Oxford professor Ludovic Phalippou told financiers responsible for investing trillions of dollars in retirement money that the stated returns for private equity funds were nonsense, there were two reactions, he recalls. Some worried they could be legally liable for misunderstanding the data. And some wanted everyone to pretend the talk never happened. […] Last month, Phalippou fired off one final paper blasting the opacity of private equity fees and performance. He doesn’t plan to write on the subject again. […] He says he’s now switching focus to environmental, social, and governance (ESG) investing—a topic in vogue in finance. He’s curious about how to properly measure it and sees signs of greenwashing, in which companies exaggerate the ESG benefits of an investment. ‘I have managed to piss off some ESG investors already,’ he says.”
The Financial Times reports that Larry Fink retains position as highest-paid CEO in asset management: https://www.ft.com/content/4345d095-62d8-4980-aa7d-80479f2ed21e “Combined pay and bonuses among industry’s leaders rises to $233m last year.”
The Financial Times reports that Calpers, Schroders call for mandatory inclusion of climate risks in accounts: https://www.ft.com/content/09444686-e4da-4360-98ba-51fc670c3826 “Big investors demand groups follow BP’s example and consider global warming risk in financial statements.”
Pensions and Investments reports on ESG investing momentum growing – survey: https://www.pionline.com/esg/esg-investing-momentum-growing-survey) “Momentum behind ESG investing has grown since the COVID-19 pandemic, according to a survey of 500 global institutional investors released Tuesday by CoreData Research. The survey conducted in the second quarter found investors, including pension funds, endowments and foundations, sovereign wealth funds and banks, adopting more sophisticated and fully integrated strategies. CoreData found that 51% of the global institutional investors now fully integrate ESG into their investment approaches, up from 36% in the final quarter of 2019.”
Asian Investor Daily reports on Asian insurers building from the basics in ESG adoption: https://www.asianinvestor.net/article/asian-insurers-building-from-the-basics-in-esg-adoption/462640 “Regional insurers lack a holistic approach to ESG adoption, but appear likely to increasingly use exchange-traded funds as they increase their usage of the principles.”

Europe

Pan-European developments

The European Commission has published a study on directors’ duties and will open a consultation on sustainable corporate governance: https://ec.europa.eu/commission/presscorner/detail/en/MEX_20_1436. “Today, the Commission published the findings of its study on directors' duties and sustainable corporate governance. The study shows that listed companies within the EU still tend to focus on short-term benefits of shareholders rather than on the long-term interests of companies. […] The study also finds that current board remuneration structures and board expertise pose challenges for sustainability. Furthermore, there is a lack of stakeholder input in the company's decision-making and limited enforcement of the directors’ duties when it comes to acting in the long-term interests of the company. A public consultation on sustainable corporate governance will be launched in autumn 2020.” The report, entitled Study on directors’ duties and sustainable corporate governance, is available here: https://op.europa.eu/en/publication-detail/-/publication/e47928a2-d20b-11ea-adf7-01aa75ed71a1/. Details about the initiative on Sustainable corporate governance, including the current roadmap (feedback open until 8 October 2020) and the planned consultation, are available here: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12548-Sustainable-corporate-governance
The Financial Times reports that Wirecard scandal will drive supervision overhaul, says EU economy chief: https://www.ft.com/content/7edd6c45-f3f5-4444-90e7-2598a567c1e2 “Previous failed attempt to reinforce EU watchdogs was a ‘missed opportunity’, says Dombrovskis.”
Responsible Investor reports that Investors ask for SDG-driven stewardship code for Europe’s Green Deal: https://www.responsible-investor.com/articles/investors-ask-for-sdg-driven-stewardship-code-for-europe-s-green-deal “Aviva and Federated Hermes suggest advancing SRD II in EU Sustainable Finance agenda.”
ESG Clarity reports on Asset managers: Virtual AGMs are no replacement for in-person meetings: https://esgclarity.com/asset-managers-virtual-agms-are-no-replacement-for-in-person-meetings/ “[A]sset managers have said companies must return to in-person meetings once the pandemic is over, with the possibility to hold hybrid meetings to increase shareholder participation.”

City AM reports that Wizz Air shareholders revolt against CEO bonus: https://www.cityam.com/wizz-air-shareholders-vote-down-executive-pay/ “Wizz Air shareholders have voted down its directors’ executive pay for the year, a week after shareholders raised concerns about a possible bonus payment to its chief executive. CEO Jozsef Varadi was set to receive a £485,000 bonus despite Wizz Air missing its profit target for the year to 31 March. More than half of the airline’s shareholders – 51.63 per cent – voted against the directors’ remuneration report at its AGM, the firm said today.”
The Daily Telegraph reports that Bosses’ pay cut at 36 blue chip firms after Covid crisis struck: https://www.telegraph.co.uk/business/2020/08/05/bosses-pay-cut-36-blue-chip-firms-covid-crisis-struck/. “Median total pay for FTSE 100 bosses fell to £3.6m last year, the lowest since 2011, according to new research.” See the underlying report here: http://highpaycentre.org/pubs/hpc-cipd-annual-ftse-100-ceo-pay-review-ceo-pay-flat-in-2019. “The High Pay Centre and CIPD annual assessment of FTSE 100 pay packages shows that median pay for chief executives fell by 0.5% between 2018 and 2019 at £3.61m compared to £3.63m. However, this is still 119 times that of the average (median) UK full-time worker earning £30,353.”
The Financial Times asks Will digital AGMs replace meeting directors over a prawn sandwich?: https://www.ft.com/content/293817d5-4d70-44c6-bf49-148b2baff59f “Virtual annual meetings are the post-pandemic norm but shareholders are worried over the loss of face-to-face engagement.”
The Telegraph reports that JD Sports suffers second pay revolt: https://www.telegraph.co.uk/business/2020/07/31/jd-sports-suffers-second-pay-revolt/ “The leisurewear retailer has been hit by two successive rebellions over executive pay.”
Accountancy Daily reports that Pension providers to report on climate change financial risks: https://www.accountancydaily.co/pension-providers-report-climate-change-financial-risks “The government is consulting on plans designed to ensure pension providers consider the risk of climate change on their investments, with trustees legally required to assess and report on the financial risks.” The consultation is available here: https://www.gov.uk/government/consultations/taking-action-on-climate-risk-improving-governance-and-reporting-by-occupational-pension-schemes
The Financial Times reports that Standard Life boss to take helm of UK audit watchdog: https://www.ft.com/content/5ccdf563-3adf-446e-a87e-5ee924946f80 “Keith Skeoch will help run the Financial Reporting Council while it forces an effective split of Big Four accountants.”

France

Bloomberg reports about Backstabbing, Patronage And Squabbles in French Billionaire Class: https://www.bloombergquint.com/gadfly/lagardere-vincent-bollore-and-hedge-fund-amber-look-hard-to-beat. “The new coalition makes life deeply uncomfortable for Arnaud. Vivendi and Amber are Lagardere’s two biggest investors, with a combined 44% stake. Amber’s biggest complaint is an antiquated management structure that lets Arnaud retain de facto control of a company in which he owns just 7% of the stock. This partnership arrangement, known in France as a ‘commandite,’ also means Arnaud’s management firm is generously reimbursed, even though operational responsibility is largely delegated to Lagardere’s two businesses, publishing and retail. If Bollore and his hedge fund ally expected their combined might to weaken Arnaud’s resolve, they’ve been quickly disabused of the idea. On Aug. 17, less than a week after Vivendi announced it was teaming up with Amber, Lagardere’s board extended Arnaud’s contract by four years. That looked like an effort to shore up control before the reinforced opposition was able to drive through a board shakeup. It was also a pretty good demonstration of why Amber is so unhappy about the company’s corporate governance — the commandite structure means even the board can’t oust Arnaud until the end of his contract. Arnaud’s rearguard defense may yet be in vain, however. According to Reuters, Vivendi and Amber are seeking a shareholder meeting to change the board anyway. If no such meeting is approved by the current directors, as seems likely, a court case is bound to follow. Would a judge really dismiss the demands of such a large tranche of the shareholder base?”

Germany

The Financial Times reports on Wirecard: the frantic final months of a fraudulent operation: https://www.ft.com/content/6a660a5f-4e8c-41d5-b129-ad5bf9782256 “A plan to buy Deutsche Bank is now seen as part of a desperate effort to disguise fraud at the German payments group.”
Deutsche Welle reports that Delivery Hero replaces Wirecard in Germany's blue-chip DAX: https://www.dw.com/en/delivery-hero-replaces-wirecard-in-germanys-blue-chip-dax/a-54630169 “As scandal-ridden payment services company Wirecard drops out of the DAX-30 index, it's being replaced by Berlin-based Delivery Hero. The food delivery company is active in over 40 countries around the globe.”
The Financial Times reports that Covid crisis softens Germany’s stiff corporate culture: https://www.ft.com/content/338b1d6d-8b46-4c75-8c2b-d9518477b8e1 “Pandemic has been a decisive moment in showing what is possible with remote working.”

Italy

Reuters reports that France's Vivendi seeks meeting with Mediaset to discuss truce: https://www.reuters.com/article/us-mediaset-vivendi/frances-vivendi-seeks-meeting-with-mediaset-to-discuss-truce-sources-idUSKCN2571QI “French media group Vivendi (VIV.PA) has asked to meet top executives at Mediaset (MS.MI) to discuss a deal to end its long-running row with the Italian broadcaster, three sources with knowledge of the matter said on Tuesday.”
Reuters reports that Intesa secures full control in takeover battle for UBI: https://www.reuters.com/article/us-ubi-m-a-intesa-sanpaolo/intesa-secures-full-control-in-takeover-battle-for-ubi-idUSKCN24T0PI “Italy’s Intesa Sanpaolo on Tuesday scored a complete victory in its takeover battle for UBI Banca, securing the two-thirds majority it needs to absorb the smaller rival and reap the biggest benefits from the deal.”
The Financial Times reports that Covid crisis gives cover for Italy’s interventionist instincts: https://www.ft.com/content/3a4376f5-6209-4cc9-a8c7-979f0670f513 “Investors and businesses believe policy changes have as much to do with dirigisme as saving the economy.”

Netherlands

The Financial Times reports on Dutch plan to tax departing multinationals gains momentum: https://www.ft.com/content/d5e84695-5f9b-498a-bb05-ba1a080a9b0f “Unilever has said the bill would change its plans to unify its UK operations.”

Switzerland

Finanz und Wirtschaft reports that SNB's US portfolio grows significantly (in German): https://www.fuw.ch/article/us-portfolio-der-snb-legt-markant-zu/ “The Swiss National Bank holds almost $120 billion in US equities - a quarterly increase of almost a quarter. Over $12 billion is invested in Apple and Microsoft.“

Spain

El Confidencial Digital reports that Spain will contribute 75,000 euros to good corporate governance practices in Latin America (in Spanish): https://www.elconfidencialdigital.com/articulo/ultima-hora/espana-contribuira-75000-euros-practicas-buen-gobierno-corporativo-america-latina/20200728165122150702.html “The Council of Ministers has approved the agreement authorizing Spain's contribution to the OECD, in terms of promoting good governance in Latin American companies during 2020, for the amount of 75,000 euros, a figure that has been contributed since 2012, although Spain has been contributing since 2007.”

Norway

Investments & Pensions Europe reports that Norway’s new SWF chief agrees to shed AKO Capital in 11th hour deal: https://www.ipe.com/news/norways-new-swf-chief-agrees-to-shed-ako-capital-in-11th-hour-deal/10047404.article “The hedge fund billionaire set to take the top job at Norway’s giant sovereign wealth fund in a week’s time last night agreed to relinquish his remaining stake in AKO Capital entirely as a new employment contract was drawn up in response to parliamentary demands.”
The Financial Times reports that Storebrand dumps oil and mining stocks on climate change lobbying: https://www.ft.com/content/00af52b7-381c-4a5d-91f1-3b3d4ce04256 “The asset manager’s divestment fits in a worldwide movement against global warming.”

North America

United States

Corporate Secretary Magazine reports on Safe and sound? Covid-19 puts spotlight on human capital: https://content.corporatesecretary.com/story/corporate-secretary-summer-2020/page/5/1 “Despite initial claims the pandemic and associated economic turmoil would cool interest in ESG issues, the reverse appears to have happened – with a particular focus on social issues such as human capital management as companies tackle employee safety and the future of work.” In this article, Georgeson's Hannah Orowitz “notes that reporting will be company-specific but recommended that issuers look at Boston Trust’s Q1 ESG impact report which spells out what investors are asking for.”
American Banker reports on The year shareholder meetings went virtual: https://www.americanbanker.com/news/the-year-shareholder-meetings-went-virtual “Financial institutions faced the same issues many other companies did when scrambling to reorganize their annual meetings in the spring. Like many industries, they had no choice but to move them online.” In this article Georgeson’s Don Cassidy “notes that many banks have lots of retail shareholders. Many of these longtime investors like attending annual general meetings in person to ask questions of the executives.”
The Washington Post reports that Average CEO earnings soared to $21.3 million last year and could rise again in 2020 despite the coronavirus recession: https://www.washingtonpost.com/business/2020/08/18/corporate-executive-pay-increase/ “At America’s 350 largest companies, the pay ratio between chief executives and workers was 320 to 1, researchers found. Fueled by a surging stock market, CEO compensation climbed to its highest level in seven years last year and could be poised to rise again in 2020, despite the widespread layoffs and pay cuts of the coronavirus recession.”
The Wall Street Journal has published a comment by Lucian Bebchuk and Roberto Tallarita which argues that ‘Stakeholder’ Capitalism Seems Mostly for Show: https://www.wsj.com/articles/stakeholder-capitalism-seems-mostly-for-show-11596755220 “If CEOs really intended to amend their companies’ purpose, they’d at least consult their boards first.” See the underlying research here: https://corpgov.law.harvard.edu/2020/08/12/was-the-business-roundtable-statement-on-corporate-purpose-mostly-for-show-1-evidence-from-lack-of-board-approval/
The Financial Times reports that US companies award executives big bonuses before declaring bankruptcy: https://www.ft.com/content/ca84483c-220c-42cf-a405-84b96a2d1b04 “‘Retention’ payments for those running bust groups reward failure, say lenders.”
The Guardian reports that Elon Musk becomes world's fourth richest man on Tesla boom: https://www.theguardian.com/business/2020/aug/19/elon-musk-becomes-worlds-fourth-richest-man-on-tesla-boom “Should the company’s valuation continue to rise at such astonishing rates, it could supercharge Musk’s fortune, with a $55bn bonus, agreed in 2018 and payable on the achievement of a series of targets. The most outlandish of those targets, at the time, appeared to be increasing the firm’s market capitalisation to $650bn – 12 times what both Tesla and General Motors were worth. Today, Tesla is worth more than eight times General Motors.”
The Financial Times reports on US companies urged to appoint Covid-19 experts to boards: https://www.ft.com/content/0d076c81-1f97-49b2-9032-495d23443eef “Harvard’s school of public health advising businesses on how to emerge safely from lockdown.”

Asia

Japan

The Financial Times reports that Investors should note that Japan is dismantling some old defences: https://www.ft.com/content/fed216f5-83a9-4909-b062-4a62fb4e9915 “Unwinding dense networks of cross-shareholdings could help Topix close gap with peers.”

China

Bloomberg reports that Blackrock, Temasek, and China Construction Bank received approval to set up asset management joint venture in China: https://www.bloomberg.com/news/articles/2020-08-22/blackrock-temasek-set-up-asset-management-jv-in-china “BlackRock Inc. and Singapore’s Temasek Holdings Pte received approval to jointly build an asset-management business in China with one of its biggest banks, bolstering the U.S. company’s expansion in the nation.”
MarketWatch reports on China delays new asset-management rules: https://www.marketwatch.com/story/china-delays-new-asset-management-rules-2020-08-02 The People's Bank of China said in a statement on Friday that it would give banks one more year to fully adapt to the new rules, which require them to set aside more capital for loans repackaged as investment products and ward off risks from shadow banking activities. The central bank had previously required all banks to comply with the rules by the end of 2020.
Reuters reports that Shenzhen’s start-up ChiNext will officially challenge Shanghai for tech listings, while adding fuel to a technology war with United States: https://www.reuters.com/article/us-china-markets-tech/shenzhens-chinext-challenges-shanghai-adds-fuel-to-technology-war-with-u-s-idUSKBN25I04E “Eighteen companies will begin trading on the Nasdaq-style start-up board on Monday in a first round of listings. This comes after months of reforms aimed at fast-tracking initial public offerings and boosting financing for tech firms as the United States and China fight for global tech leadership.”
Bloomberg reports on New Oriental picks banks for Hong Kong’s second listing: https://www.bloomberg.com/news/articles/2020-08-10/new-oriental-is-said-to-pick-banks-for-hong-kong-second-listing "New Oriental would join a growing cohort of U.S.-traded Chinese companies seeking second listings in Hong Kong, amid rising tensions between Beijing and Washington. China’s No. 2 online retailer JD.com Inc. and gaming company NetEase Inc. raised a combined $7.6 billion in Hong Kong share sales in June, and U.S.-listed Chinese companies mulling listings in the financial hub include 21Vianet Group Inc., GDS Holdings Ltd. and Yum China Inc."
South China Morning Post reports on Luckin investor aims to reinstate ousted director: https://www.scmp.com/news/article/3095887/luckin-coffee-asked-reverse-boardroom-changes-after-co-founders-ouster-china “Luckin Coffee, the coffee chain dubbed as China’s Starbucks, has been asked by some shareholders to reverse some of its boardroom changes in July following the ouster of its co-founder and chairman, as Chinese regulators prepare to clamp down on accounting fraud."

Hong Kong

Bloomberg reports that Alibaba and Xiaomi get into Hong Kong’s Benchmark Index: https://www.bloomberg.com/news/articles/2020-08-14/hong-kong-s-benchmark-index-poised-to-include-tech-giant-alibaba "Alibaba Group Holding Ltd. will be included in Hong Kong’s Hang Seng in one of the biggest revamps in the benchmark index’s 50-year history. Xiaomi Corp. will also be joining the index, as will Wuxi Biologics Cayman Inc., according to Hang Seng Indexes Co. on Friday as it unveiled the first major changes since the compiler began allowing dual-class shares and secondary listings."
Reuters reports that China's Nongfu Spring to raise $1.1 billion in Hong Kong IPO: https://www.reuters.com/article/us-nongfuspring-ipo/chinas-nongfu-spring-to-raise-1-1-billion-in-hong-kong-ipo-idUSKBN25L04L "Chinese drinks maker Nongfu Spring 9633.HK will raise up to $1.08 billion by pricing its shares between HK$19.50 to HK$21.50 ($2.52 to $2.77) in its Hong Kong initial public offering, according to its prospectus."
China Daily Hong Kong reports that SFC approves in principle for 1st crypto exchange license: http://www.chinadailyasia.com/article/140900 “OSL said last November it had become the first firm to apply for a digital asset license from Hong Kong’s Securities and Futures Commission (SFC) under new rules allowing crypto exchanges to opt into regulation. No other company has so far said it has received such approval. Financial regulators worldwide have been debating whether and how they should regulate the cryptocurrency or virtual asset industry.”
The Financial Times reports on Vanguard to exit Hong Kong and move regional HQ to China: https://www.ft.com/content/ff29241a-def6-4c8e-86a6-910f591254b2 “Vanguard has announced it will exit Hong Kong and transfer its Asian headquarters to Shanghai in a move that will be seen as a blow to the former British colony where overseas companies have expressed concerns about China’s recent imposition of a controversial national security law.”
The Standard reports that Index compiler names new CEO: https://www.thestandard.com.hk/breaking-news/section/2/153943/Index-compiles-names-new-CEO “Hang Seng Indexes Company appoints Anita Mo as new chief executive from September 1. Mo will succeed Vincent Kwan who is to retire in January 2021 after 20 years. Kwan will take on the role of senior adviser."

India

The Business Standard reports that Proxy firms play by new rulebook as Sebi tightens procedural guidelines: https://www.business-standard.com/article/markets/proxy-firms-play-by-new-rulebook-as-sebi-tightens-procedural-guidelines-120081200092_1.html “The new framework is aimed at increasing accountability, addressing conflict of interest, and establishing greater communication between proxy advisors and their clients and the company.”
Money Control reports that SEBI may put on hold move to amend Related Party Transactions rules as corporates are in no mood to do so now: https://www.moneycontrol.com/news/business/economy/sebi-may-put-on-hold-move-to-amend-related-party-transactions-rules-as-corporates-are-in-no-mood-to-do-so-now-5593351.html “Market regulator also likely to postpone a decision on the move to include key management personnel and promoters while passing special resolutions granting loans above a certain limit.”

Israel

The Israel Securities Authority has issued a Call for Proposals on Corporate Responsibility and ESG Risk Disclosures: http://www.isa.gov.il/sites/ISAEng/1489/Calls_for_Comments/Documents/ESG_Risk_Disclosures.pdf “In recent years, international investors, and especially institutional investors such as pension funds, insurance companies, and leading financial entities, are increasingly looking at corporate social responsibility, and no longer relying exclusively on yields in their investment decision-making. […] Given the complexity of the issue, ISA staff believes that it is important to hear the public’s preliminary opinion on the subject. Specifically, the public is invited to address issues including the need for ESG disclosures, whether disclosures should be mandatory or voluntary, whether disclosures should apply only to reporting companies according to the securities laws, and whether securities laws is the most appropriate framework for such disclosure requirements.”

Taiwan

Taiwan News reports that Taiwan launches new ESG dashboard: https://www.taiwannews.com.tw/en/news/3996307 “Taiwan Depository & Clearing Corporation works with world's top ESG rating providers: FTSE Russell, ISS ESG, MSCI, Sustainalytics.”

Australia

The Australian Financial Review reports that Social purpose comes to the forefront: https://www.afr.com/companies/financial-services/social-purpose-comes-to-the-forefront-20200816-p55m8h “Many Australian investors looking at a nation battered by a long drought followed by catastrophic bushfires and now the ongoing COVID-19 pandemic are recalibrating their portfolios to focus more on funds and companies with strong environmental, social and governance (ESG) principles."
The Syndey Morning Herald reports about Warnings JobKeeper payments could boost company profits and executive bonuses: https://www.smh.com.au/business/companies/warnings-jobkeeper-payments-could-boost-company-profits-and-executive-bonuses-20200703-p558ph.html “Company directors have been warned against using the government's JobKeeper stimulus package to artificially inflate profit figures and pad up executive bonuses, with governance experts saying the practice could lead to shareholders being given misleading guidance.”
The Australian Financial Review reports that David Murray's exit puts all boards on notice: https://www.afr.com/chanticleer/david-murray-s-exit-puts-all-boards-on-notice-20200824-p55olg “All boards of directors of Australian companies are on notice that ESG issues could possibly be the trigger for them losing their jobs.”
City AM reports that Rio Tinto boss has bonus slashed by millions after mining giant destroys Aboriginal caves: https://www.cityam.com/rio-tinto-boss-has-bonus-slashed-by-millions-after-mining-giant-destroys-aboriginal-caves/ “Chief executive Jean-Sebastien Jacques and two other executives will take the financial hit after the company destroyed two caves in Western Australia – against the wishes of Aboriginal traditional owners – as part of a mine expansion.”

Contact

Daniele Vitale
Georgeson
Head of Governance UK & Europe > Corporate Advisory
daniele.vitale@georgeson.com
T +44 (0)20 7019 7034 M +44 (0)7747 697 136 F +44 (0)870 702 0158
Moor House, 120 London Wall, London EC2Y 5ET, United Kingdom
www.georgeson.com

If you don't want to receive any more messages (to: unknown@noemail.com) any longer, you can unsubscribe free of charge at any time.

Georgeson - Georgeson is a trading name of Computershare Investor Services PLC. Computershare Investor Services PLC is registered in England & Wales No. 3498808.
Registered office:
The Pavilions, Bridgwater Road
BS13 8AE Bristol
United Kingdom

contact@georgeson.com
www.georgeson.com