The proxy advisory firm ISS has urged AXA's shareholders to oppose the proposed salary increase of CEO Thomas Buberl at the next general meeting which will take place on 28 April 2022.
The fixed part of T. Buberl's annual salary would reach 1.65 million EUR (1.8 million USD) while the variable part could amount to 1.75 million EUR (1.9 million USD).
Adding to these two salary components the distribution of free shares, T. Buberl's maximum annual global remuneration would increase from 5.8 million EUR (6.3 million USD) to 6.9 million EUR (7.5 million USD), which represents a 19% increase.
According to the ISS, the justification for the overall compensation increase is not compelling and the level of transparency on the individual performance criteria of the bonuses remains below the best market practices.
In defense of its decision, AXA revealed that the current total compensation of the CEO is about 25% lower than that of the top three competing European companies (Allianz, Generali and Zurich Insurance).
The French group also reported that Thomas Buberl's compensation has not been changed since 2016 and will remain the same for the entire term (2022-2026).
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