MILAN (Reuters) – UniCredit’s ongoing presence in Russia exposes the Italian financial institution to reputational dangers, main governance adviser Glass Lewis mentioned in an issue paper revealed forward of the lender’s annual normal assembly.
UniCredit shareholders meet on April 12 to approve full 12 months outcomes and hand Chief Govt Andrea Orcel one other three-year mandate.
Glass Lewis additionally took intention at a proposed enhance in Orcel’s pay which the financial institution plans to introduce because of a change in the way in which it calculates the conversion worth of shares assigned as a part of pay packages.
It was not instantly potential to achieve UniCredit for remark.
Within the proxy paper revealed forward of the AGM, Glass Lewis suggested shareholders to vote in opposition to the remuneration coverage saying the rise for Orcel was extreme.
Underneath the proposal, his base wage will enhance by 10.8% to three.6 million euros to be paid in shares, lifting the overall goal remuneration to eight.6 million from 7.5 million and the overall most remuneration if targets are surpassed to 10.8 million from 9.75 million.
Glass Lewis additionally urged shareholders to be “conscious of the
firm’s persevering with operations in Russia.”
Companies nonetheless uncovered to Russia can count on “elevated stakeholder scrutiny of their method,” presumably main “to materials reputational injury which will influence on shareholder worth,” the adviser mentioned.
“We imagine that shareholders can moderately count on firms which have determined to take care of materials actions or operations within the area to offer intensive disclosure to the market,” it mentioned.