Proxy advisor opposes re-election of Richemont chairman

Proxy advisor Institutional Shareholder Services counselled Richemont investors to reject several of the luxury goods company’s proposals for its annual general meeting in September, according to a report seen by Reuters on Tuesday.

ISS recommended voting against the re-election of Chairman Johann Rupert and board member Anton Rupert, citing concerns over the company’s unequal voting rights structure, which it argued benefits both individuals.

According to Richemont’s website, the Rupert family holds 9.1% of the equity of the company, which translates to 50% of voting rights.
ISS also opposed the proposed bonus payments to the executive committee, totalling 30.6 million Swiss francs ($38 million), criticising Richemont for not providing the targets and results that underpin the variable compensation.

Richemont did not immediately respond to a Reuters request for comment. The business operates in categories including jewellery, leather goods, watches, clothing, and accessories.