Sika Annual General Meeting: Ethos renews its support to the board members not linked to the Burkard family

At the annual general meeting of Sika to be held on 11 April 2017, the Ethos Foundation recommends to support the reelection of the 6 board members not tied to the Burkard family. Those directors have demonstrated for more than two years their commitment in maintaining Sika’s independence against the hostile takeover by Saint-Gobain. Ethos however recommends not to grant the discharge and not reelect the three board members representing the Burkard family (Urs Burkard, Willi Leimer, Jürgen Tinggren). In addition, Ethos recommends to not newly elect Dr. Jacques Bischoff, a representative of SWH, whose candidacy to the board was submitted by the Burkard family after the deadline for inclusion in the AGM agenda.

Ethos launches the first Swiss stock exchange index dedicated to corporate governance

In the follow-up to its 20th anniversary, the Ethos Foundation launches a new stock exchange index dedicated to corporate governance at Swiss companies. In collaboration with the Swiss Stock Exchange (SIX Swiss Exchange), Ethos publishes the "Ethos Swiss Corporate Governance Index" (ESCGI) which takes into account the main corporate governance best practice criteria in order to define the weight of the different constituents. This is the first index of this type on the Swiss stock market. The index allows investors to reduce the weight of companies that entail a corporate governance risk.

Ethos proxy voting guidelines 2017: New good governance requirements

The Ethos Foundation publishes the 16th edition of its proxy voting guidelines and corporate governance principles. In particular, the 2017 edition foresees that members of the executive management will no longer be accepted as board members. In addition, the maximum duration of the external audit firm’s mandate is set at 20 years in line with the practice adopted by the European Union. Regarding authorisations to issue capital for general purposes without pre-emptive rights, a single authority may not exceed 15% of issued capital down from 20% currently. Finally, the discharge will not be granted to the governing bodies, in particular when the company is in the situation of capital loss or over indebtedness.

Sika: Ethos welcomes the decision of the Zug Cantonal Court

Ethos is very satisfied that the Zug Cantonal Court has rejected the suit by the Burkard Family against the board of Sika. This decision confirms the board’s entitlement to limit the voting rights of the Burkard Family for votes related to the sale of their shares to the competitor Saint-Gobain. This restriction allows maintaining the independence of Sika, as aimed for by the board, the executive management and the majority of shareholders, among which Ethos. In light of the importance of this decision for Sika and the Swiss economy, Ethos will continue as an accessory party in this legal procedure if the Burkard Family appeals the decision of the court.

Ethos study on the 2016 Swiss annual general meetings: limits of self-regulation

The annual general meetings of Swiss listed companies have been shaped in the last two years by the implementation of the Minder initiative which foresees a binding vote on the pay for the governing bodies and the annual election of board members. These provisions have significantly increased pressure on boards. Ethos’ study on the 204 companies of the SPI Index shows that the transparency and structure of remuneration systems have substantially improved. Vincent Kaufmann, Ethos’ CEO, says “however, the absolute amounts in 2015 are up 2% and often remain high, especially with regard to company performance.”

Sika : Ethos recommends to support the board at the annual general meeting of 12.04.2016

Geneva, 24.03.2016 - At the annual general meeting of Sika of 12.04.2016 Ethos Foundation is fundamentally opposed to the re-election of the three members of the board tied to the Burkard Family (Urs Burkard, Willi Leimer, Jürgen Tinggren) and to the election of Jacques Bischoff, the new candidate proposed by the Burkard Family. On the other hand, Ethos recommends voting in favour of the shareholder resolution filed by the group of Anglo-American shareholders united around Cascade Investment, which demands to prolong until 2020 the mission entrusted to three independent experts appointed last year.

Sika: Ethos supports the board in the ongoing legal procedure at the Court of Zug

The Ethos Foundation was accepted as an accessory party in support of the board of directors in the trial opposing it to the Burkard Family at the Cantonal Court of Zug. The family has demanded the cancellation of the decisions taken at the last general meeting where the board decided to limit the registered voting rights of the SWH family holding to 5% of the total registered shares. Precisely one year after the announcement by the Burkard Family of its decision to sell its holding in Sika to the competitor Saint Gobain, Ethos confirms its determination to support the board in its will to preserve the independence of Sika.

Ethos proxy voting guidelines 2016: strengthening corporate governance

The Ethos Foundation publishes the 15th Edition of its proxy voting guidelines and corporate governance principles. In particular, this edition foresees new reasons for refusal of the discharge, namely in connection with the violation of local community rights or refusal of the company to recognize the negative impact of certain of its products on humans or the environment. Ethos will also recommend refusing share buy back programmes if they are selective or significantly hinder the capacity of the company to pay a dividend. Finally, following the Sika affair, Ethos added to its proxy guidelines different points dealing specifically with the unequal treatment of shareholders. 

Subscribe to Corporate Governance