Succession planning at the board
The company subsequently started to transition from a founder-led company to a professional management-led company. In order to be competitive globally, this was accompanied by new remuneration packages. We discussed the impact of this and called for more disclosure of performance-linked pay for the CEO and other senior executives. The results of the 2016 AGM showed an opposition of over 20% to the company’s remuneration proposals. During the rest of the year, we continued to push for improved disclosure, including the employment agreement conditions of key personnel due to the controversial severance payments they received.
In 2017, the company published a detailed remuneration report for its executive leadership, which is included in its 20F form filing to the US regulator. In addition to the CEO’s pay, the special report discloses the employment agreement terms of the COO and the executive remuneration components of the leadership team for seven top executives. This sets a positive example for technology firms globally. Nevertheless, we encouraged the company to continue its direction of travel and provided an example from a financial institution which clearly states its minimum threshold for incentive awards, target and maximum cap. While the company has disclosed the severance payment terms for the COO, we suggested it also report on the severance payments of the other senior executives. We continue to push for best practice disclosure on pay and have also started to engage with the company on the health and safety of its workers.
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