Legal & General to Vote Against Cineworld Chair, Remuneration Committee
--Legal & General Investment Management plans to escalate
vote position on concerns over pay package
--LGIM plans to vote against re-election of Cineworld's chair
and members of remuneration committee
--Asset manager said it is concern by Cineworld's lack of
By Adria Calatayud
Legal & General Group PLC's investment-management arm plans
to vote against Cineworld Group PLC's chairwoman's re-election and
against all members of the board's remuneration committee due to
concerns over its incentive plan.
"We have strong concerns about the structure of the long-term
incentive plan granted to the executives, and its misalignment with
the long-term interests of the company, its shareholders and other
stakeholders," Legal & General Investment Management said in a
blog post published Thursday.
"In particular, we note the impact of Covid-19 on the company's
financials and stakeholders, including furloughs for employees and
the suspension of dividends. We also take into account the current
social sensitivities around income inequality," LGIM said.
The London-based asset manager said it would vote against
resolutions to re-elect Cineworld Chairwoman Alicja Kornasiewicz as
director at the company's annual general meeting due to be held on
Wednesday. LGIM also said it would oppose the re-election of Dean
Moore, chair of the remuneration committee, and Camela Galano,
member of the committee, and the election of Ashley Steel as
director, member of the remuneration committee.
Cineworld declined to comment on Friday. In its AGM circular,
the company--the owner of U.S. cinema chain Regal--said its board
believes the proposed resolutions are in the best interests of
shareholders and the company as a whole and recommended that
shareholders vote in favor of them.
LGIM said it had chosen to escalate its vote position as it was
concerned by the lack of response from the company's remuneration
committee and board despite significant opposition from
shareholders to its pay proposals.
LGIM said it already raised concerns about Cineworld's pay
package at a special shareholder meeting held in January. At that
meeting, two remuneration resolutions were approved despite
significant minority opposition.
Proxy advisers Glass Lewis and Institutional Shareholder
Services recommended that shareholders oppose Cineworld's
remuneration proposals at the January meeting, and said the awards
contemplated by the company's incentive plan were "excessive."
Write to Adria Calatayud at firstname.lastname@example.org
(END) Dow Jones Newswires
May 07, 2021 02:51 ET (06:51 GMT)
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