Addresses two shareholder proposals.
Alimentation Couche-Tard Inc. announced updates to its outlook on certain issues and clarified a response to specific shareholder proposals this week.
The company noted it continues to focus on both organic growth and acquisitions, while exercising brand creativity and financial discipline.
Couche-Tard has evolved over the years, and so have its business practices, both internally and externally. This evolution is what drives the company’s key governance questions. In keeping with its position as an industry leader, Couche-Tard’s Board of Directors is updating its outlook on certain governance issues and wishes to modify or clarify its response to two shareholder proposals.
First, considering Shareholder proposal No. 1 – Adopt a “Say on Pay” advisory vote on executive compensation, the company is recommending the adoption of this proposal. In line with modern governance policies, Couche-Tard will therefore conduct a “Say on Pay” vote during next year’s Annual General Meeting. This will enhance transparency with regard to its executive compensation. Couche-Tard believes in a meaningful dialogue with shareholders on this and other initiatives related to governance.
Second, while Couche-Tard is maintaining its recommendation to vote against proposal No. 3 – Conduct an accountability exercise on environmental and social issues, it wishes to clarify its position regarding this request. The company is committed to developing a strategy to report on its sustainability initiatives, and will increase its transparency by better communicating its present efforts and future targets to shareholders. As such, the company has identified focus areas based on its current business model, and believes it will be able to produce its first sustainability report in time for next year’s Annual Shareholders Meeting.
“The Board of Directors believes in the need to support governance best practices and to continuously evolve when it comes to safeguarding the best interest of its shareholders, said Alain Bouchard, founder and chairman of the Board. As we globalize our brand, our position on both “Say on Pay” and transparent reporting regarding our sustainability initiatives is the right position to take at this time.”
Brian Hannasch, president and CEO also added: “Through our decentralized business model, many efforts and initiatives continue to take place on a local level – both in terms of environmental and community involvement. Today, we are committed towards enhanced transparency for our sustainability reporting. We will dedicate efforts to a clear strategy identifying our focus areas, priorities and targets and we will communicate our intentions going forward. We intend to present our plan to shareholders within the next year.”