Anne-Marie Clarke
Director - Head of Corporate Governance
Executive remuneration is a perennial topic and an area where we support many companies, their Remuneration Committees and Boards. In this update we’re delighted to present our case study on the Hunting PLC Remuneration Policy. Read and learn about how we worked collaboratively with Hunting and their remuneration consultants, Mercer, to deliver a successful outcome with nearly 86% voting in favour.
Throughout the EQ advisory business, we’ve had the opportunity to meet many of you at recent conferences. Firstly the IR Society Conference on 12 June, where team members from EQ RD:IR and EQ Proxy attended. And more recently the CGI conference on 3-4 July, where team members from EQ Proxy and Company Secretarial Services hosted a stand – read more about our take aways below.
As we end the main 2024 AGM season, we share a quick insight into our world. We are also reflecting on what’s happened more widely in the UK marketplace, finalising our Mid-Season review. Following this, September sees the EQ AGM Forum run by Lisa Graham, Head of Meeting Management. Do look out for further communications on these.
Case Study: Using data and engagement to help win shareholder approval for an innovative remuneration framework.
Hunting PLC is a world-leading manufacturer and technology provider for the global energy, aerospace, medical and power generation industries. While the firm is listed on the FTSE 250 and incorporated in the UK, the group generates more than 70% of its revenue in North America. As a result, the bulk of Hunting’s operations, as well as its Chief Executive and the majority of its senior leadership team, reside in the US.
In order to achieve its commercial goals and meet its talent requirements, the firm needed and subsequently constructed a new ‘US-influenced’ remuneration policy to help it compete for talent in the US, which is by far its largest market. The type of hybrid remuneration framework proposed by Hunting and its consultants Mercer was – and still is – considered highly innovative in the UK, even though it is commonplace in the US.
Governance 2024: Across the Board
Colleagues from across the EQ Advisory business, Company Secretarial Services and EQ Proxy (proxy solicitation and corporate governance advisory) were delighted to host a stand at this year’s “must attend” conference for those working in corporate governance and company secretarial. Our added value offers of a sweet cart and very desirable notebooks proved to be a big draw!
One of the key themes was AI. We will be coming back to this subject in our next update.
Quick insights from our 2024 AGM proxy season
“Life is like a box of chocolates – you never know what you’re gonna get!” said Forrest Gump. And that is how we, in the proxy solicitation and advisory business, start our proxy season. This is why we say there is very little we haven’t experienced. Our mantra is we are here to maximise the chance of success and minimise the risks. For December year-ends our active support campaigns gather pace from before Christmas, with May seeing the peak. From a corporate governance advisory perspective there are six key elements we deliver, and at any time we can be delivering all of these. Not only that, we are actively engaging with shareholders and proxy advisory agencies and keeping our clients informed and advised all the way up to the shareholder meeting (AGM or GM). Vote projections are highly valued and by far the largest numbers this year have been for the Remuneration Report, closely followed by director re-elections and disapplication of pre-emption rights.
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