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Sycomore Asset Management

PRI reporting framework 2020

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You are in Direct - Listed Equity Active Ownership » (Proxy) voting and shareholder resolutions

(委任状による)議決権行使および株主決議

LEA 12. Typical approach to (proxy) voting decisions

12.1. (委任状による)議決権行使を通常どのように決定しているかを明示して下さい。

アプローチ

以下に基づいて行う

12.2. 合意された議決権ポリシーがどのように遵守されているかを概観し、ポリシーの例外が適用された場合(該当する場合)のアプローチの詳細を示してください。

- As a first step, we collaborate very closely with ISS during the preparation of the AGM's season to make sure that our policy is applied at best and that as many cases as possible are covered.

- We also identify voting items or specific situations that require more attention and that we want to handle on a case-by-case basis. For those voting items, ISS issues no voting recommendation for us and "refers" the item to us so that the vote cannot be casted until we have entered the voting instruction ourself. 

- Then, during the voting season, we carrefully review ISS recommendations to detect any potential deviation from our policy or specific situations that might require an exception.

- When a specific situation requires an exception, we enter the rationale directly on the voting plateform under the concerned item so that any exception is documented and easily accessible by any member of the team. 

- At the end of the year, we review all exceptions and report on the proportion of voting decisions they represented in our annual voting report. In 2019, those particular cases represented 0.6% of voting decisions. A majority of them concerned authorizations for operations on share capital which did not fully comply with Sycomore guidelines (reserved to a category of investors such as private placement or silent on the possible use during takeover period) and which were supported by Sycomore because their strategic relevance and/or the control structure of the company justified such an exception. Current company's practices or commitments taken upon engagement can also be a ground for exceptions. 

12.3. 補足情報[任意]

Sycomore AM has its own voting policy, which it updates every year prior to the start of the voting season, according to which ISS makes custom voting recommendations. Sycomore AM's governance team (5 ESG specialists involved) reviews ISS research and custom voting recommendations. Sycomore AM remains in control of all voting decisions. 


LEA 13. Percentage of voting recommendations reviewed (Not Applicable)


LEA 14. Securities lending programme

14.1. 貴社では、セキュリティーズレンディングを設定していますか?

14.2. 貴社がセキュリティーズレンディングをしていない理由を説明してください。(最大500語)

Sycomore AM believes that as a responsible investor there are several practices that should be put in place to lend securities, such as making sure that we vote at AGMs and ensuring that the counterparty will use them in a responsible way. We have decided not to lend securities as we do not have the processes in place to ensure these responsible practices are upheld.

14.4. 補足情報 [任意]


LEA 15. Informing companies of the rationale of abstaining/voting against management

15.1. 報告年度内に関与した議決権行使のうち、貴社、または貴社の代理を務めるサービスプロバイダーが議決権行使に先立って企業に懸念を表明したものの割合を示してください。

15.2. これらの企業に対し、議決権行使に先立って懸念を表明した理由を示してください。

15.3. 補足情報 [任意]

For significant shareholdings (in terms of Sycomore's share of capital and/or companie's weight in Sycomore's portfolios) which are responsive to engagement, we systematically inform the company of the rationales of our votes against management, most often by email or phone. We participate in pre-AGM consultations and encourage companies to organize them as early as possible in the preparation of the AGM, so that shareholder concerns can be anticipated ahead of the AGM and addressed on time. In 2019, we initiated a dialogue with 63 companies in pre-AGM context based on this process.
In addition, we will always give and explain our voting intentions ahead of the AGM if a company asks for them.
Our proxy advisor ISS gives companies included in main indices the possibility to review the draft report on their voting recommendations for fact-checking. This report includes all voting rationales and can give companies indications on main concerns its shareholders might have upon voting.
However, as ISS does not engage on behalf ot its clients, we do not include this type of contacts here.


LEA 16. Informing companies of the rationale of abstaining/voting against management

16.1. 貴社または貴社の代理を務めるサービスプロバイダーが、議決権行使を棄権する場合、または経営陣の提案に反対票を投じる場合に、当該企業にその根拠を伝えた議決権の割合を示してください。これは行使可能な全議決権の中で占める割合とします。

16.2. 貴社が議決権行使を棄権する場合、または経営陣の提案に反対票を投じる場合に、企業にその根拠を伝える理由を示してください。

16.3. 貴社が議決権行使を棄権するまたは経営陣の提案に反対票を投じる根拠を伝える場合、この根拠を公表しているか示してください。

16.4. 補足情報[任意]

We usually communicate and explain rationales before voting so that the company can react - this is why answers for LEA15 and LEA16 are similar.
For significant shareholdings (in terms of Sycomore's share of capital and/or companie's weight in Sycomore's portfolios), we systematically inform the company of the rationales of our votes against management, most often by email or telephone. We participate in pre-AGM consultations and encourage companies to organize them as early as possible in the preparation of the AGM, so that shareholder concerns can be anticipated ahead of the AGM and addressed on time. In 2019, we initiated a dialogue with 63 companies in pre-AGM context based on this process.
In addition, we will always give and explain our voting intentions ahead of the AGM if a company asks for them.
Our proxy advisor ISS gives companies included in main indices the possibility to review the draft report on their voting recommendations for fact-checking. This report includes all voting rationales and can give companies indications on main concerns its shareholders might have upon voting. However, as ISS does not engage on behalf ot its clients, we do not include this type of contacts here.


LEA 17. Percentage of (proxy) votes cast

17.1. 貴社やサービスプロバイダーが(代理)投票の指示を発行するマンデートを有している上場株式について、報告年度中に行った投票の割合を記載してください。

1%単位の投票率

100 %

この投票率の計算基準を明記してください

17.3. 補足情報[任意]

Sycomore AM exercises all voting rights attached to the securities held in the portfolios it manages and for which it is reponsible for proxy voting, except when voting requires to block shares. 
In 2019, we voted at 436 AGMs. We did not vote at 6 AGMs which required to block shares and at 3 AGMs due to exceptionnal technical or administrative issues in the chain of intermediaries through which votes are communicated. Those 9 AGMs represented 0.1% of the total volume of listed equity holdings for which we could have voted.


LEA 18. Proportion of ballot items that were for/against/abstentions

18.1. 貴社または貴社の代理を務めるサービスプロバイダーが出した議決権行使に係る指示を追跡しているか示してください。

18.2. 貴社または貴社の代理を務める第三者が出した議決権行使に係る指示のうち、各投票項目の占める割合を示してください。

議決権行使に係る指示の対象
投票の内訳(%)
経営陣の提案に対する賛成票
77 %
経営陣の提案に対する反対票
23 %
棄権
0 %
100%

18.3. 貴社が経営陣の提案に対する反対票を投じたケースにおいて、貴社がエンゲージメントを行った企業の占める割合を示してください。

19

18.4. 補足情報 [任意]

We track the reason why we abstain or we vote against management recommendations for all votes cast within the online proxy voting tool.
For significant shareholdings, we systematically inform the company of the rationales of our votes against management, most often by email or telephone.
Finally, we will always give and explain our voting intentions ahead of the AGM if a company asks for them. (see LEA 15 for details).
 


LEA 19. Proportion of ballot items that were for/against/abstentions

19.1. 不首尾に終わった議決権行使後の正式なエスカレーション戦略が貴社にあるか示してください。

19.3. 補足情報 [任意]

Our voting policy aims at promoting our vision of a stakeholder-centric governance approach and hence is based on the same principles as our engagement policy. However, when we identify urgent need to engage with a company on a particular issue, this is generally handled separately from proxy voting. For this reason, escalation strategies are applicable to our engagement actions more than to our voting actions.


LEA 20. Shareholder resolutions

20.1. 貴社が報告年度中に、直接もしくはサービスプロバイダーを介して、ESG株主決議を提出または共同提出したか示してください。

20.2. 貴社が行ったまたは共同で行ったESG関連株主決議の数を記載してください。

2 合計

20.3. 以下の結果をもたらした、これらのESG関連株主決議の数の割合を記載してください。

議案に採用された
100 %
企業側での変更または企業との交渉により撤回された
0 %
別の理由で撤回された
0 %
企業側により拒絶された/受け入れられなかった
0 %
合計 100%

20.4. 貴社が提出または共同提出したESGの株式決議で議案に採用された(撤回されなかった)ものに対する賛成票の割合を選択してください。

50%超
20〜50%
100 20%未満

20.5. 貴社が提出または共同提出したESG関連の株主決議で、結果が達成されたものについて説明してください。

In the context of the governance crisis experienced by EssilorLuxottica following the combination of the two groups, which resulted in March 2019 in the filing of an arbitration request with the International Chamber of Commerce by Delfin (holding of Luxottica’s founder Del Vecchio), Sycomore AM co-filed with 6 other international investors two shareholder proposals at the shareholders meeting held on 16 May 2019.  The objective was to elect 2 new independent board members, Wendy Lane and Jesper Brandgaard, in order for them to represent minority shareholders and contribute to the resolution of the crisis between the two parties.

Outcomes: both resolutions received high support rates, respectively 43.7% and 35% of votes in favour, demonstrating very high support from minority shareholders (considering that Delfin, which held 31% of voting rights and Valoptec (Essilor's shareholder employees and retirees holding), which held 4.3% of voting rights did not support the resolution). Those proposals and the significant echo they had contributed to both parties announcing a settlement agreement a few days before the AGM on 13 May, including changes in the governance to overcome the crisis as well as the termination of all claims and legal proceedings.

 

20.6. 貴社が他の投資家によって提出されたESG株主決議を審査するかどうかについて説明してください。

We support all shareholder resolutions that encourage companies to improve their ESG practices, insofar as they comply with our engagement principles.

These resolutions are analysed on a case-by-case basis by the ESG team, to ensure that they are relevant, sufficiently well-argued and detailed to have a real impact. 

In 2019, we supported 74% of shareholder resolutions relative to social and environmental issues. In particular, we voted in favour of all resolutions requesting more transparency on ESG considerations (gender pay gap, social impact of specific technologies, impact of operations on local communities...) or calling for greenhouse gas emission reduction targets.

However, we voted against resolutions that did not appear relevant considering the firm’s current practices or its exposure to the risk considered.

20.7. 補足情報[任意] 


LEA 21. Examples of (proxy) voting activities

21.1. 報告年度に貴社またはサービスプロバイダーが実行した(委任状による)議決権行使の例を提供してください。

ESGトピック
Diversity
意思決定者
目的

GENDER DIVERSITY AT BOARD LEVEL

Encourage companies to increase board gender diversity in order to achieve a minimum 40% threshold for the under-represented gender (in line with the most ambitious existing regulations on this topic in Europe) and engage dialogue on this issue.

対象範囲およびプロセス

We apply this principle since 2016 for the whole voting scope: for companies that fail to comply with the 40% threshold, we generally vote against the appointment of new male directors or against the renewal of the members and in particular the Chairman of the Nomination Committee, depending on voting options available at the AGM. 

As a result of this policy, gender diversity was at least one of the grounds for voting against the election or reelection of 130 directors in 2019 (around 10% of candidates submitted to election). 

結果
ESGトピック
Executive Remuneration
意思決定者
目的

EXECUTIVE REMUNERATION ALIGNMENT WITH GLOBAL PERFORMANCE

Ensure executive remuneration scheme is transparent and aligned with stakeholder's interests over the long term.

対象範囲およびプロセス

This principle is applied to the whole voting scope. 

In order to encourage transparent remuneration practices that successfully align executive interests with those of other stakeholders over the long term, we request transparency on : 
- The amounts allocated and paid;
- The nature of the quantitative and qualitative criteria used;
- Their respective weightings;
- The calculation methodology used;
- The ex-post target achievement rate.

Furthermore, we recommend:
- The integration of clearly identified, quantifiable and relevant extra-financial criteria that are monitored over time;
- Demanding performance criteria that are consistent with the targets disclosed to the market, where relevant.
- Precise qualitative targets whose achievements levels are factually justified by the Board.

Based on these principles, we voted against 44% of resolutions on executive remunerations in 2019.

結果
ESGトピック
Executive Remuneration
意思決定者
目的

SOCIAL ACCEPTABILITY OF PAY

Recognizing that increased shareholder engagement on remuneration schemes' transparency and alignement has not prevented an overall quantum increase over the past years, resulting in a still widening gap with employees' remunerations, we decided to go one step further by formalizing an absolute moderation threshold in our voting policy, representing a symbolic "socially acceptable cap". 

対象範囲およびプロセス

This principle is applied to the whole voting scope.

In the absence of information for most European companies on employees’ median annual compensation / CEO pay ratio, we use the amount of 250x the average minimum legal wages in France, Germany and the Netherlands (which constitute the majority of our European holdings), i.e. around 4.6 million euros, as a relevant point of reference. As 250 is the average number of working days in the European Union, it offers a symbolic threshold beyond which an executive is paid more in one day than a minimum wage worker is in one year. 

In the United States (3% of our voting scope), where companies now have the obligation to discose the CEO pay ratio, we use the American median CEO pay ratio (140:1, source : Equilar CEO pay ratio survey 2018) as a reference.

Process: Vote against say-on-pay resolution for packages exceeding this threshold.

Based on this principle, we voted against 37 remunerations exceeding this threshold in 2019.

 

結果
ESGトピック
Other governance
意思決定者
目的

EMPLOYEE SHAREHOLDING

Support the development of employee shareholding, a key factor of employee's motivation

対象範囲およびプロセス

This principle is applied to the whole voting scope. 

In order to encourage employee shareholding, we have set no limits to their ownership of capital and support all capital increases reserved for employees, providing they respect our dilution limits (applicable to all capital increases). 

結果

21.2. 補足情報[任意]


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