Support for remuneration policy at The Weir Group

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.

13 April 2018

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

NUMBERPROPOSALMANAGEMENT RECOMMENDATIONVOTING INTENTION
Management proposals for Annual General Meeting
1Accept Financial Statements and Statutory ReportsForFor
2Approve Final DividendForFor
3Approve Remuneration ReportForFor
4Approve Remuneration PolicyForFor
5Approve Share Reward PlanForFor
6Approve All-Employee Share Ownership PlanForFor
7Elect Clare Chapman as DirectorForFor
8Elect Barbara Jeremiah as DirectorForFor
9Elect Stephen Young as DirectorForFor
10Re-elect Charles Berry as DirectorForFor
11Re-elect Jon Stanton as DirectorForFor
12Re-elect John Heasley as DirectorForFor
13Re-elect Mary Jo Jacobi as DirectorForFor
14Re-elect Sir Jim McDonald as DirectorForFor
15Re-elect Richard Menell as DirectorForFor
16Reappoint PricewaterhouseCoopers LLP as AuditorsForFor
17Authorise the Audit Committee to Fix Remuneration of AuditorsForFor
18Authorise Issue of Equity with Pre-emptive RightsForFor
19Authorise Issue of Equity without Pre-emptive RightsForFor
20Authorise Issue of Equity without Pre-emptive Rights in Connection with an Acquisition or Other Capital InvestmentForFor
21Authorise Market Purchase of Ordinary SharesForFor
22Authorise the Company to Call General Meeting with Two Weeks' NoticeForFor
23Adopt New Articles of AssociationForFor

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.