Swiss Re investors urged to oppose chair’s re-election over lack of gender diversity

Influential proxy adviser ISS has really useful buyers vote in opposition to the re-election of Swiss Re chair Sergio Ermotti at subsequent month’s AGM as a “sign of concern” over the dearth of gender variety on the reinsurer’s board.

In a report forward of the vote on April 13, Institutional Shareholder Companies rebuked the Zurich-based group, which is without doubt one of the world’s largest reinsurers and a vocal advocate of variety, for falling wanting an trade benchmark of getting no less than 30 per cent of boards made up of ladies.

Girls at current make up 23 per cent of Swiss Re’s board, which can enhance to 25 per cent when a male director resigns on the AGM.

ISS is advising buyers to vote in opposition to the board proposal to re-elect Ermotti — former chief govt of funding financial institution UBS — who additionally chairs Swiss Re’s nomination committee, a task he took up in October.

The corporate is endorsing the remainder of the board appointments and says the vote in opposition to Ermotti is warranted “as a result of the board is insufficiently gender numerous”.

Proxy advisers equivalent to ISS have affect over passive buyers and huge establishments, who will usually comply with their suggestions when voting on the vary of issues put earlier than shareholders at normal conferences.

Earlier this month, Swiss Re mentioned that it will enhance feminine illustration on the board to the 30 per cent stage by the point of the following yr’s AGM.

In response to the ISS transfer, Swiss Re mentioned gender variety was “of utmost significance for the composition of the board of administrators” and reiterated its 30 per cent goal.

“At Swiss Re, we embrace and construct variety, fairness and inclusion, bringing collectively one of the best of a number of generations, cultures, skillsets and considering . . . We strongly consider that Mr Ermotti’s measured method to succession planning and assuring gender variety is in one of the best pursuits of shareholders and Swiss Re.”

ISS mentioned some buyers might select to help Ermotti’s re-election as a result of its current assertion on bettering variety, however added that the annual report “doesn’t present any additional data in regards to the causes for non-compliance at this assembly, and we word that the edge has not been met up to now years both”.

In a November report, index supplier MSCI mentioned 20 per cent of board seats on firms listed on considered one of its world indices have been held by girls, up 2 share factors from 2018.

However it warned that “the year-over-year oscillation” within the knowledge introduced into query “how dedicated firms are to reaching and sustaining no less than 30 per cent girls illustration at board stage, and finally full gender parity, in a well timed method”.