Institution Theme Category Industry
  • Wellington Management
  • Governance
  • Compensation
  • Healthcare
Company Year Market Link
Consort Medical 2019 N/A https://www.wellington.com/uploads/2020/10/4dc06a6392f39bcacb4ae0bcaa9a5aeb/664_11_a4_wmc.pdf

An equity portfolio manager with a significant holding and the ESG analyst discussed the proposed changes to the remuneration policy with the chair of the remuneration committee as part of the company’s consultation prior to publishing the forward-looking policy for the annual general meeting.
During the five years of the CEO’s tenure, total pay more than doubled and ultimately surpassed that of the company’s peer group. The board sought to lower earnings-per-share (EPS) growth targets that determine the payout of the long-term incentive plan for executives. We expressed our concern that the board was not sufficiently holding management accountable and that the targets did not reflect developments of the underlying business, including the performance of a business acquired a few years earlier.

Details

  • Proponent
  • Management
  • Resolution
  • Executive remuneration
  • Vote
  • For
  • Rationale
  • N/A
  • Details
  • Following shareholder consultation, the board raised EPS targets for its long-term incentive plan. While we still believe the targets should have been more rigorous, we were encouraged to see improvement from what was initially proposed. We voted in support of the advisory remuneration policy proposal, which passed with 85% support from shareholders.