Wednesday 1st April 2015
NEWS TICKER: WEDNESDAY, APRIL 1st 2015 : The EBRD is considering a credit line of up to €15m to Všeobecná úverová banka a.s. (VUB) in the form of an extension of a €5m existing facility signed in December 2014, bringing the total amount provided to VUB under SlovSEFF III to €20m. This operation will enable VUB to provide sub-loans to companies and residential sector borrowers (housing associations) for energy efficiency and renewable energy investments in the Slovak Republic and provide financing for sustainable energy projects with a focus on reducing greenhouse gas emissions and assist in mitigating high energy and carbon intensity in the region - CMS says it has advised Orifjan Shadiyev, owner of Capital Bank Kazakhstan, on the acquisition of RBS’s business in Kazakhstan (RBSK). The CMS team was led by Graham Conlon, a partner in the corporate and international private equity team, and supported by senior associate Tetyana Dovgan - CBRE Group Inc says it has agreed to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls Inc. (JCI) for $1.475bn in cash. GWS is a provider of integrated facilities management solutions for occupiers of commercial real estate and has operations around the world – The Securities and Exchange Board of India (SEBI) says it has allowed OTC Exchange of India (OTCEI) to exit as a bourse from the nation's securities markets. According to SEBI, OTCEI had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets adding that the bourse had made payment of necessary dues to the regulator, including 10% of the listing fee and the annual regulatory fee. "From the valuation report and undertaking of OTCEI, it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date," SEBI said in the order dated March 31. In allowing the exit, SEBI has asked the bourse to change its name and not to use the description ‘Stock Exchange’ or any variant of it and to avoid any representation of present or past affiliation with the stock exchange, in all media. The central government had granted recognition to OTCEI, as a stock exchange on August 23, 1989 initially for a period of 5 years, which was subsequently renewed from time to time. As per SEBI’s rules, a stock exchange, whose annual trading turnover on its platform is less than Rs1,000 crore, can apply for voluntary surrender of recognition and exit, while a bourse which fails to achieve a turnover of Rs 1,000 crore, is subject to a compulsory exit process - Independent subsea remotely operated vehicle (ROV) services provider, ROVOP, has established a Western Hemisphere headquarters and support base in Houston and has hired three ROV industry professionals to lead the business. Scott Wagner, Brett “Gonzo” Eychner and Wayne Betts bring a combined total of more than 100 years’ global experience in the ROV services sector to ROVOP. They join an established management team and staff of 130 based in Aberdeen, Scotland, who have developed ROVOP into a leading player in the ROV field. The company’s client portfolio includes oil & gas, offshore wind and telecommunications companies. Mark Vorenkamp, chairman of ROVOP, said: “ROVOP is changing the market for ROV services. Over the last two decades, ROV technology, capability and service has fallen behind the pace of change seen in other industries. ROVOP’s facility is located in North West Houston on a 1.5 acre site which includes a 4,500 ft2 office and 17,300 ft2 workshop where the company will manage their fleet of FMC Schilling Robotics and SAAB Seaeye ROVs. “The recent mobilisation of two Schilling Ultra-Heavy Duty (UHD) Generation III ROVs, capable of closing a blowout preventer (BOP) within 45 seconds to meet American Petroleum Institute (API) requirements, illustrates ROVOP’s commitment to supporting clients with industry leading technology in the Gulf of Mexico,” says Wagner - The Straits Times Index (STI) ended +0.01 points higher or 0.00% to 3447.02, taking the year-to-date performance to +2.43%. The FTSE ST Mid Cap Index gained +0.02% while the FTSE ST Small Cap Index declined -0.04%. The top active stocks were CapitaLand (unchanged), SingTel (-0.23%), UOB (+0.22%), DBS (+0.15%) and ST Engineering (unchanged). The outperforming sectors today were represented by the FTSE ST Technology Index (+1.13%). The two biggest stocks of the FTSE ST Technology Index are Silverlake Axis (+1.83%) and STATS ChipPAC (unchanged). The underperforming sector was the FTSE ST Basic Materials Index, which declined -1.24% with Midas Holdings’s share price unchanged and Geo Energy Resources’s share price gaining+0.52%. The three most active Exchange Traded Funds (ETFs) by value today were the DBXT MSCI Indonesia ETF (+0.14%), LYXOR China H (+0.29%), DBXT FT China 25 ETF (+1.75%).

UK government shifts policy on executive pay

Wednesday, 20 June 2012
UK government shifts policy on executive pay Following its industry consultation, ‘Executive Pay Consultation on Enhanced Shareholder Voting Rights’, the Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay. http://www.ftseglobalmarkets.com/

Following its industry consultation, ‘Executive Pay Consultation on Enhanced Shareholder Voting Rights’, the Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay.

The Department for Business Innovation and Skills (BIS) has decided on a three year binding vote on future executive remuneration policy, including pay and exit pay.By making the binding vote on the remuneration policy effective for three years,  the government hopes to encourage greater dialogue on executive remunertaion between companies and shareholders. It should also encourage companies to adopt a longer term and transparent approach to their executives' pay.

This package of reforms will address failures in corporate governance by empowering shareholders to engage effectively with companies on pay. It will:

  • Give shareholders binding votes on pay policy and exit payments, so they can hold companies to account and prevent rewards for failure
  • Boost transparency so that what people are paid is easily understood and the link between pay and performance is clearly drawn
  • Ensure that reform has a lasting impact by empowering business and investors to maintain recent activism.


Business Secretary Vince Cable explains that: “At a time when the global economy remains fragile, it is neither sustainable nor justifiable to see directors’ pay rising at 10 per cent a year, while the performance of listed companies lags behind and many employees are having their pay cut or frozen.

“In January we kicked off a national debate aimed at encouraging shareholders to become more actively engaged as company owners in better aligning directors’ pay with performance. I have been greatly encouraged by the ‘shareholder spring’ and I want to see that momentum sustained. That is why I am bringing forward legislation to strengthen the powers of shareholders through a binding vote on pay,," he adds.

The government’s reforms will provide shareholders with new powers to hold companies to account, while making it easier to understand what directors are earning and how it links to company performance.

The current advisory vote gives shareholders a mechanism to register their dissatisfaction with a company’s remuneration report. “In practice, however, there has been too much reliance on investment managers to ensure consistent oversight of portfolio companies on corporate governance issues such as pay” says Aled Jones, senior consultant in Mercer’s Investments business. “Trustees need to adopt a more proactive stance by regularly monitoring their managers on how they raise strategic issues such as remuneration in their interactions with company directors. Ultimately this is about the effectiveness of board processes. Where these processes are not successful – such as when pay proposals are voted down; it is shareholders’ responsibility to understand what went wrong and take action.

The government will introduce the reforms through amendments to the Enterprise and Regulatory Reform Bill, which is currently before Parliament.

Revised, simplified regulations setting out how companies must report directors’ pay will be published at the same time. There will be a chance to comment on these regulations before they become law.

The government intends all these reforms to be enacted by October 2013.

 

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