For the second time, on May 5th, 2014, Etica Sgr voted at the shareholder annual meeting of Sanofi, a French pharmaceutical company.
Etica Sgr stressed the management on some environmental, social and governance (ESG) issues.
Etica Sgr voted for all the items in agenda, with the exception of the one on the approval of the allocation of income and dividend. The vote against the allocation of income came from the high level of payout ratio (the ratio between the dividend and the income), considered excessive: Etica Sgr believes that it is important to maintain a balance between the portion of profits paid to shareholders and the part that is set aside as a reserve, to ensure a sustainable development of the Companies over the long term. Etica Sgr supported the election of four directors because no corporate governance concerns have been identified. Regarding remunerations, Etica Sgr voted for all the items in agenda: the severance payment and the additional pension scheme for Viehbacher (Company’s CEO) are in line with market standards, as the compensation policy of President and CEO, that consider also environmental, social and governance (ESG) targets in the determination of the performance-based pay elements.Engagement Foreign companies