Scor chairman's pay barely approved by shareholders

Scor’s chairman, Denis Kessler, only barely gained shareholder approval for his pay package at the general meeting of the French reinsurer’s shareholders.

Some 42% of shareholders voted against approving Kessler’s pay package as chief executive and chairman for the year ending December 31, 2021. But the resolution was nonetheless approved, with a majority of 58% voting in favour. Three-quarter of shareholders voted.

Such an act of protest is extremely unusual in insurance, where such resolutions are usually quickly adopted with an overwhelming number of votes.

But Kessler has been a divisive figure in recent years. Last summer, he won a shareholder vote to approve his 2020 remuneration with only 56% of shareholders voting for it.

Shareholders have complained of the “excessive control” exercised by Kessler, which they say is damaging the company’s performance. Some are also angry Kessler turned down an offer by Covéa to buy the reinsurer for €43 ($45.09) a share in 2018.

At close of play on May 18, Scor was trading at €28.17 a share, after a sharp fall occasioned by the pandemic.

Last year, the roles of chairman and chief executive were split, with Kessler retaining the role of chairman and Laurent Rousseau taking over as chief executive.

At the most recent general meeting, a separate amendment raising the age limit for chairman of the board to 72 years received approval of 77% of voting shareholders, with 23% voting against.

This will allow Kessler will continue as chairman until the end of his term of office as director, which expires at the end of the 2024 general meeting.

Scor also announced new policies to fight climate change, including no coverage for new oil field production projects from 2023, with some exceptions.

The reinsurer has also outlined an “ambition” to double the coverage for low carbon energies by 2025.

But environmental campaigners dismissed the new policies as “timid”, pointing out restrictions on oil field production projects do not also apply to gas fields.

“Scor has failed to catch up to its competitors, such as Allianz, Swiss Re and Hannover Re, which have already excluded new oil and gas production projects from their insurance businesses in line with the latest IPCC and IEA conclusions,” Camilla Schramek, senior communications campaigner at The Sunrise Project, said.

“While committing to no longer underwrite new oil projects is a good first step, these restrictions fail to cover gas and are thus inconsistent with what’s needed to address the climate emergency,” Schramek added.

Yesterday, Lloyd’s came under fire from climate activists after publishing its environmental, social and governance report.

Activists said Lloyd’s needed to take further action to stop managing agents insuring new fossil fuel projects.

Lloyd’s had previously said it was asking its managing agents not to provide any new cover for coal-fired plants, coal mines, oil sands and Arctic energy exploration from January 1, 2022.

But campaigning group Insure our Future said Lloyd’s had failed to report on fulfilling this commitment.

“Lloyd’s council… needs to stop its failed greenwash public relations strategy and start taking genuine climate action by ensuring Lloyd’s members stop insuring and investing in new fossil fuels and phase out existing investments and insurance in line with climate science,” Lindsay Keenan, European co-ordinator at Insure Our Future, said.

In the ESG report, Lloyd’s said it would “continue to take a leadership position in being the insurer of the transition… to make headway against the world’s objective of reaching net zero by 2050”.

This will include working with insurers on their net zero plans, the Sustainable Markets Initiative and work to reduce the corporation’s own emissions.

Lloyd’s said it would “continue to provide transparent reporting against our goals and work with  government, regulators, investors and customers to support an orderly, but urgent transition”.