Advisers back CIAM in fight against Scor’s pay policy
This article was first published on Activist Insight Online on March 27, 2020. For more information about the module, click here.
Activist investor Charity Investment Asset Management (CIAM) has doubled down on its campaign against Scor’s remuneration scheme, revealing that three major proxy advisers have opposed CEO Denis Kessler’s compensation.
CIAM said in a Wednesday letter that proxy advisory firms Institutional Shareholder Services (ISS), Glass Lewis, and Proxinvest all acknowledged that Kessler’s pay package for 2019 “is unjustifiable” and remains disconnected to the firm’s performance.
The activist claimed that Scor only recently modified its proposal on executive pay for 2020 in an apparent move to satisfy ISS. The amendments, which came after CIAM’s March 24 letter, “slightly improved” the total shareholder return (TSR) vesting schedule to be used in long-term plans, the activist said. According to CIAM, Glass Lewis said the updated policy failed to “sufficiently promote a pay-for-performance culture.”
CIAM CEO Catherine Berjal argued that the “superficial” changes are especially concerning given the turbulent market conditions stemming from the COVID-19 crisis, which ultimately makes the amendments “wholly inappropriate.”
CIAM concluded by reiterating its concerns with the firm’s succession plans. The activist called for a confirmation that Scor will appoint an independent chair in 2021, when Kessler’s mandate ends.
Last Friday, Scor announced the postponement of its annual meeting, days after CIAM’s appeal for such a move.
Shares in Scor traded down 4% at 2:45 p.m. Central European Summer Time on Wednesday, roughly the same as the CAC 40 Index.