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

NUMBER PROPOSAL MANAGEMENT RECOMMENDATION VOTING INTENTION
Management proposals for Annual General Meeting
NUMBER1PROPOSALAccept Financial Statements and Statutory ReportsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER2PROPOSALApprove Final DividendMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER3PROPOSALApprove Remuneration ReportMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER4PROPOSALApprove Remuneration PolicyMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER5PROPOSALApprove Share Reward PlanMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER6PROPOSALApprove All-Employee Share Ownership PlanMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER7PROPOSALElect Clare Chapman as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER8PROPOSALElect Barbara Jeremiah as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER9PROPOSALElect Stephen Young as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER10PROPOSALRe-elect Charles Berry as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER11PROPOSALRe-elect Jon Stanton as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER12PROPOSALRe-elect John Heasley as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER13PROPOSALRe-elect Mary Jo Jacobi as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER14PROPOSALRe-elect Sir Jim McDonald as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER15PROPOSALRe-elect Richard Menell as DirectorMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER16PROPOSALReappoint PricewaterhouseCoopers LLP as AuditorsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER17PROPOSALAuthorise the Audit Committee to Fix Remuneration of AuditorsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER18PROPOSALAuthorise Issue of Equity with Pre-emptive RightsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER19PROPOSALAuthorise Issue of Equity without Pre-emptive RightsMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER20PROPOSALAuthorise Issue of Equity without Pre-emptive Rights in Connection with an Acquisition or Other Capital InvestmentMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER21PROPOSALAuthorise Market Purchase of Ordinary SharesMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER22PROPOSALAuthorise the Company to Call General Meeting with Two Weeks' NoticeMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
NUMBER23PROPOSALAdopt New Articles of AssociationMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor

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.