SCOR shareholders back CEO Kessler opposing "destabilisation attempt" by investor CIAM

The shareholders of reinsurer SCOR have rejected the resolution proposed by its activist investor CIAM that  suggested its CEO Denis Kessler be removed from the company's board of directors, calling it a "destabilisation attempt" at its annual general meeting (AGM) on April 26.

SCOR said the shareholders "strongly supported" and approved all resolutions proposed by the company’s board of directors upholding Kessler's position, both as chairman and CEO, while maintaining his current remuneration level.

Additionally, they approved the reappointment of lead independent director Augustin de Romanet.

Earlier in March, French investment management firm CIAM, which holds 0.94 percent stake in SCOR, had submitted a draft resolution asking the reinsurer to oust its long-serving chief Kessler, calling him "an ubiquitous leader without any opponent", while noting that his level of total remuneration is unjustified compared to that of the group’s competitors.

CIAM had stated that "One person combining both roles results in too much power, particularly as the Board elects, revokes, evaluates and determines the level of compensation of the CEO."

The investor had also opposed the renewal of de Romanet as director of SCOR.

However, shareholders at the general meeting voted 74.37 percent in favour of Kessler maintaining his combined roles, and approved the resolutions relating to his remuneration with 54.46 and 54.56 percent votes. The renewal of Romanet’s mandate was approved by 84.66 percent of the votes.

Furthermore, the AGM approved the payment of a dividend of €1.75 per share for the 2018 financial year, with the coupon date set at April 30, 2019, and the payment date at May 2, 2019.

“The Board of Directors is extremely satisfied to note that the shareholders have strongly supported all its proposed resolutions," said Kessler.

"The Board is delighted that the shareholders have expressed their deep opposition to the destabilisation attempt led by the activist fund CIAM, and is pleased that the shareholders have renewed Augustin de Romanet’s mandate as the Group’s Lead Independent Director.

Kessler added: "This vote by our shareholders reaffirms their confidence in the Group’s governance in terms of the development of the company, focusing on the twofold objective of profitability and solvency. These votes of confidence constitute a validation of the strategy followed for more than 16 years to raise this global reinsurance group to the highest level and maintain its independence, which is a gauge of its success. SCOR is fully mobilized to use all available means to create value, and is actively preparing its seventh strategic plan, which will be presented in September.”

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