BP shareholders rebel against $8.7 million pay package
Nearly a third of BP shareholders failed to back the $8.7 million pay package of chief executive Bob Dudley and other boardroom staff at the oil and gas company’s annual general meeting yesterday. 13 percent voted against the executive pay outs and a further 19 percent abstained, primarily in retaliation at the tripling of Mr Dudley’s total compensation last year despite a drop in profits. BP chairman Carl-Henric Svanberg insisted that the high pay awards were good news for investors. “We compete in a global market and BP must ensure it attracts and keeps the best people,” he told the audience. “Rewards are not just based on financial performance – they also reflect progress on safety, reputation and operations. In other words, if our executives are being well rewarded that’s good news for every shareholder in this room.” BP also came under fire for its close relationship with Rosneft, the Russian state-owned oil producer. Mr Dudley defended the relationship, vowing to remain in Russia despite the Ukraine crisis and arguing that the company could play a crucial role between the West and Moscow. (The Independent)
European Commission announces proposals to encourage shareholder engagement
The European Commission has announced proposals to strengthen shareholder engagement and introduce a ‘say on pay’ for Europe’s largest companies. The changes aim to improve sustainability and long-term thinking. Affecting around 10,000 companies listed on European stock exchanges, the package includes revisions to the Shareholders Rights Directive and an increased reporting requirement for corporate governance. The proposals mean that companies would have to disclose clear, comparable and comprehensive information on remuneration polices and put these to a binding shareholder vote. Michel Barnier, internal market and services commissioner, said, “The last years have shown time and time again how short-termism damages European companies and the economy. Sound corporate governance can help to change that. [The] proposals will encourage shareholders to engage more with the companies they invest in, and to take a longer-term perspective of their investment.” (Blue and Green Tomorrow)
Environment
Stationer Ryman pens new “eco font”
UK stationery company Ryman has launched a new font it says uses a third less ink and toner than standard fonts, such as Times New Roman, Arial, and Verdana, and 27 percent less than the leading “sustainable font” – cutting the costs and environmental impact of printing. Famously, ink costs more per drop than fine champagne, while the 1.5 billion cartridges sold worldwide every year are comprised of various toxic, oil-intensive, and largely non-biodegradable materials that can take over 1,000 years to break down. The Ryman Eco font, developed with creative agency Grey London, is made up of dozens of thin lines and curves separated by white space. Ryman says if everyone used the font, it would save over 490 million ink cartridges and nearly 15 million barrels of oil, equivalent to 6.5 million tonnes of CO2 emissions a year. (Business Green)
Wal-Mart announces low-cost organic food range
Retail giant Walmart is bringing its economies of scale to organic groceries. The retail giant has announced that it is teaming up with grocery company Wild Oats to offer a wide range of organic fare at more affordable prices. Walmart said the groceries will cost about one quarter less than similar organic offerings. At first, the initiative will comprise about 100 different kinds of Wild Oats food—including canned vegetables, spices, and salsa—in about half of Walmart’s 4,000 stores. Eventually, the line may include fresh dairy and produce. “We know our customers count on us to provide them with affordable access to all of the groceries they are looking for; organics are no exception,” said Jack Sinclair, Walmart’s executive vice president of grocery. The announcement comes two days after Walmart’s competitor Target said it is also expanding its lineup of organic and all-natural products, including grocery products, air fresheners and cosmetics. (Business Week)
Corporate Reputation
French probe alleged drug collusion
France’s competition authority is investigating pharma companies Roche and Novartis over alleged collusion to protect one of their biggest-selling drugs against a cheaper alternative, weeks after the pair were fined by Italian authorities over the same issue. The French probe is the latest twist in a long-running wrangle with regulators and governments over the Lucentis eye disease drug, which generated more than $4 billion in sales for the two Swiss pharmaceutical groups last year. There have long been accusations that Roche and Novartis, which jointly market Lucentis, have sought to block competition from a cheaper Roche drug, Avastin, that some studies have shown to be equally effective. The French competition authority said it carried out “search and confiscation” operations this week on both companies, who were also each fined €90 million last month by Italy’s antitrust body for pushing doctors to use Lucentis. Roche said: “There is no agreement between Roche and Novartis that restricts competition… Avastin and Lucentis are two different drugs and were developed for different therapeutic purposes.” (Financial Times)*
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