|Not disclosed - European consumer durables and apparel company||N/A||N/A||https://am.jpmorgan.com/lu/en/asset-management/per/about-us/investment-stewardship/stewardship-priorities/#Governance|
The company, formed by a merger in 2017, was subject to media reports that board relations had completely broken down. The board of the merged group comprises eight members from each of the two legacy firms, with each side accusing the other of trying to exert undue influence. With the two sides unable to agree on a CEO, decision-making appeared to be deadlocked.
We engaged with dissident shareholders who were frustrated with the pace of change post-merger, as well as with the widely reported clashes between the two camps on the board.
- Elect independent directors to the board post-merger
We supported shareholder proposals to elect independent directors to the board. In the event, the proposed nominees received 44% and 34% support, respectively. Taking into account the 32% controlling stake of one of the legacy families, this was a significant level of support from minority shareholders seeking progress. The company has since committed to redoubling its efforts to integrate the two legacy firms.