AXA: Thomas Buberl’s salary increase plan arouses criticism-April 12, 2022 16:53

(AOF) – Increased compensation for AXA CEO Thomas Buberl evokes opposition. The media said the ISS, a proxy advisory body, recommends that insurer shareholders oppose at the April 28 general meeting. On this occasion, his mission at the top of the group must be renewed until 2026.

According to a document obtained by Les Echos, Thomas Buberl should have a 14% increase in fixed compensation to 1.65 million euros and a 21% increase in variable compensation to 1.75 million euros. “Given the distribution of free stock and the potential to exceed the target, Thomas Buberl’s maximum compensation could be € 6.9 million, or 25% more than before,” said Invest Securities.

Insurers justify this increase in salary by “Mr. Bubel’s current lack of competitiveness in compensation compared to his major peers.” According to the Financial Times, the ISS cannot guarantee that the package is “appropriate.” The company noted that even with Axa’s own standards, the new compensation could allow Buberl to earn more than the CEOs of other European insurance companies.

Thomas Boubel is not the only leader in a French company grilling about his rewards. Fight Trust is also the opposite of Stellantis boss Carlos Tavares, which will reach a total of € 66 million in 2021.

In the stock market, AXA’s share rose 1.21% to € 26.82, but financial stocks are doing well even if long-term interest rates fall this afternoon. Indeed, they have made strong progress in the last few weeks, with Germany’s 10-year yield this morning surpassing 0.86%.

AOF-Details

Key Point

-The best in the world in the insurance industry, born in 1982.

-Revenue is € 97 billion, split into 26% for France, 26% for Europe (34%), Asia (16%), International (7%), and AXA XL (damages to businesses, 20%). ..

-Three main activities: Business damage (33% of sales), personal protection (16%), health (15%) prior to asset management and banking.

-Business model: Develop health and personal protection, simplify customer experience, enhance underwriting performance, maintain number one position in climate issues and increase cash flow.

-Split capital holding 4.3% (6.4% of voting rights) employee shares behind AXA Mutual (14.95% and 24.75%), Denis Duverne, managing chair of the 16-member management committee. Director Thomas Buberl.

-A very solid financial position with AA-rated debt equivalent to 27% of shareholders’ equity and a Solvency II ratio of 214% at the end of September.

Task

-“Driving progress 2023” plan: € 300 million cost reduction, portfolio volatility reduction, € 3 billion increase in free cash flow, 55-65% increase in payment rate, 3-7% of earnings per share Increased share;

-Innovation Strategy: An 8-unit AxaNext ecosystem aimed at addressing new global risks, delivering innovative solutions, and simplifying the customer experience by focusing on BtoB initiatives.

-Two Strategic Priorities for -2023: Health and Protection (Telemedicine, Care Coordination, Specific Platforms, etc.) and Damage (Cyber ​​Security, Risk Management Platforms, Especially Climate-related) / Use of Artificial Intelligence (Members of Impact IA) , About responsible AI that I think is a French tank), Open innovation (returning data, etc.).

-Environmental strategy to combat climate change and protect diversity: 20% reduction in carbon dioxide emissions associated with investment from 2021 to 2025 / € 24 billion in green investment from 2020 to 2023/1 Release of

er

Green borrowing from shale gas, oil sands and the Arctic exploitation sector / New oil exploration projects excluding groups engaged in 2022 withdrawal and energy conversion / Underwriting and investment policy fight for biodiversity / Net Zero Chairman of the Insurance Underwriting Alliance.

-Continuous simplification of the group by refocusing on major markets and disposals.

Insurance companies are concerned about the impact of climate change-

2021 was the fifth consecutive year

Accompanied by a serious natural disaster.Frequency of these events

Increase with climate change

.. The French Insurance Federation believes that the cumulative amount of natural event claims could nearly double between 2020 and 2050 when compared to the period 1989-2019. More than one-third of the expected increase is due to climate change. Therefore, the total bill for disasters over the next 30 years will increase by 93% over the last 30 years to € 143 billion. This development will increase the premiums paid by professional policyholders.

..