In its annual evaluation of the AGM season, Eumedion noted that major shareholders are increasingly represented on supervisory boards. As part of this, they often enter into relationship agreements with the company, a development Eumedion is not opposed to as long as supervisory directors act in the best interest of the company and all its stakeholders.
Proposals to rotate audit firms were also on the agenda of many AGMs in 2015. According to Eumedion, companies often provide no information about the identity of the ultimate lead partner. Eumedion further noted the ineffectiveness of new claw back legislation which requires companies, in the case of a public offer or other significant corporate action, to deduct from a director's remuneration any increase in the value of shares or options forming part the director's pay. In the report, Eumedion called for a cancellation of this provision or a tightening of the rules when the new claw back law is evaluated in 2016.
Click here for the full text of the evaluation report.
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