Daily Management Review

TotalEnergies shareholder group calls for separation of CEO and board roles


According to MarketWatch, a faction of TotalEnergies' stockholders is demanding that the CEO and board chairman positions be kept distinct.

Remy Steinegger | swiss-image.ch via flickr
Remy Steinegger | swiss-image.ch via flickr
Patrick Pouyanne has concurrently held both roles since 2015.

The Swiss Ethos Foundation and a consortium of 19 international pension funds and management organizations presented a proposal to hold an advisory vote on the matter at TotalEnergies' annual shareholder meeting in May. They pointed out that it's generally accepted that having a separate chief executive and chairman function is a sound corporate governance practice.

Despite its advisory character, the shareholder proposal is likely to be seen as undesirable in the context of the company's governance structure, commented the company’s spokesperson.

According to shareholders, there is always a chance of a conflict of interest when authority is concentrated in the hands of one individual. The Ethos Foundation stated that separating the CEO and board chair positions could enhance communication with the board over climate-related matters, particularly as many investors believe TotalEnergies' energy transition plan to be too modest.

source: marketwatch.com