Chesnara, the European life insurance consolidator, has provided an update on the voting results at its 2023 Annual General Meeting (AGM). Resolution-2, which approves the Directors' Remuneration Report, passed with 72.66% of votes in favor. The Remuneration Committee has engaged with major shareholders and proxy agencies to understand the reasons for votes cast against the resolution. Three areas of feedback have been identified: the use of cash generation metrics in incentive schemes, the disclosure of LTIP performance targets, and the assessment of M&A activity within the strategic scorecard.

In response to the feedback, Chesnara will make several changes. For LTIP awards granted in FY24, the Commercial Cash Generation metric will be replaced by a new Surplus Emergence metric. The existing relative TSR and Economic Value growth metrics will be retained. Chesnara will also disclose LTIP performance targets prospectively, starting with the targets for the LTIP awards to be granted in 2024. Additionally, the Remuneration Committee is proposing to replace the Strategic Scorecard in the Short Term Incentive Scheme (STIS) with an ESG metric and a Strategic Activity Scorecard. This will assess value-enhancing strategic activities, including M&A, management actions, operational program delivery, and pipeline development.

The proposed changes address the key issues raised by shareholders, and a final summary will be provided in Chesnara's 2023 Annual Report. Chesnara is a European life and pensions consolidator listed on the London Stock Exchange. It administers approximately one million policies and operates in the UK, the Netherlands, and Sweden. The company's primary responsibility is the efficient administration of customers' life and savings policies, while also adding value through profitable new business and value-adding acquisitions. Chesnara has increased its dividend for 18 years in a row.