Posted on Feb 15, 2019 2021 at 17:32Updated Feb 15, 2019 2021 at 18:04
“ This year, there will be scandals in the remuneration of the bosses. “Cédric Laverie, head of research at ISS (Institutional Shareholder Services) shared his conviction with investors during a” webinar “of” l’Hebdo des AG “at the end of January. Other proxy advisory agencies, such as Proxinvest or Glass Lewiss, are of the same opinion and have warned that they will scrutinize, even more this year, resolutions on executive salaries to prevent any abuse.
The economic and health crisis has weakened companies, which have achieved sluggish results. In turn, the variable remuneration of the bosses, based on performance criteria that have rarely been met, is strongly impacted. In theory, companies cannot derogate from the remuneration policy voted by shareholders the previous year. Except in the event of exceptional circumstances, fixed by the Pacte law. The exemption must be temporary, in accordance with the corporate interest and necessary to guarantee the sustainability or viability of the company. These three conditions are cumulative and therefore almost impossible to achieve together. The only solution: the company can submit to its shareholders a specific resolution modifying the voted remuneration policy. Bouygues did so last September. “ Such an approach is transparent, there is nothing to say », Explains a governance analyst.