Support for remuneration policy at The Weir Group

13 April 2018

Norges Bank Investment Management will vote in favour of the remuneration policy, the related share award plan, and all other resolutions put forth to shareholder approval at the Annual General Meeting of The Weir Group Plc on 26 April 2018. This is in line with management recommendations.

Our rationale

The board of directors of The Weir Group PLC proposes to simplify the executive remuneration framework. In Norges Bank Investment Management’s view, the proposed policy improves transparency on potential remuneration outcomes, contributes to reducing maximum award levels, and strengthens the alignment of the long-term interests of executive management and shareholders. The proposed remuneration structure is broadly in line with our position on CEO remuneration.

We commend the board’s willingness to challenge conventional thinking on remuneration and give the proposals our support.

Position paper CEO remuneration

The Weir Group Plc resolutions

NUMBER PROPOSAL MANAGEMENT RECOMMENDATION VOTING INTENTION
Management proposals for Annual General Meeting
1 Accept Financial Statements and Statutory Reports For For
2 Approve Final Dividend For For
3 Approve Remuneration Report For For
4 Approve Remuneration Policy For For
5 Approve Share Reward Plan For For
6 Approve All-Employee Share Ownership Plan For For
7 Elect Clare Chapman as Director For For
8 Elect Barbara Jeremiah as Director For For
9 Elect Stephen Young as Director For For
10 Re-elect Charles Berry as Director For For
11 Re-elect Jon Stanton as Director For For
12 Re-elect John Heasley as Director For For
13 Re-elect Mary Jo Jacobi as Director For For
14 Re-elect Sir Jim McDonald as Director For For
15 Re-elect Richard Menell as Director For For
16 Reappoint PricewaterhouseCoopers LLP as Auditors For For
17 Authorise the Audit Committee to Fix Remuneration of Auditors For For
18 Authorise Issue of Equity with Pre-emptive Rights For For
19 Authorise Issue of Equity without Pre-emptive Rights For For
20 Authorise Issue of Equity without Pre-emptive Rights in Connection with an Acquisition or Other Capital Investment For For
21 Authorise Market Purchase of Ordinary Shares For For
22 Authorise the Company to Call General Meeting with Two Weeks' Notice For For
23 Adopt New Articles of Association For For
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Important legal notice

Norges Bank Investment Management’s approach to responsible investing includes disclosing our voting decisions, in some cases in advance of the relevant meeting. This is only intended to provide information and is not solicitation or encouragement as to how others should vote. This disclosure is not investment research, advice or recommendation. Norges Bank Investment Management’s voting intention is an internal decision and has not been agreed with any other shareholders. Norges Bank Investment Management is not subject to any prohibition on dealing after the publication of this disclosure. Norges Bank Investment Management’s holdings and holdings available for voting from time to time may differ from those set out in lists of holdings as of year-end.