Xp Power Regulatory News (XPP)

XP POWER LTD - Statement on 2020 AGM Votes on Remuneration

PR Newswire

London, June 28

29 June 2020

XP Power Limited

(the ‘Company’)

Statement on 2020 Annual General Meeting Votes on Remuneration

At the XP Power Annual General Meeting held on 21 April 2020 (the ‘2020 AGM’), Resolution 12 to receive and adopt the Remuneration Policy (the ‘Policy’) was approved by 79.2% of votes cast, Resolution 13 to receive and adopt the Remuneration Report was approved by 83.0% of votes cast, and Resolution 14 to approve the Restricted Share plan was approved by 78.8% of votes cast.

In preparing the Policy, including the Restricted Share plan, the Remuneration Committee (the ‘Committee’) engaged extensively with the Company’s major shareholders, contacting investors holding 61% of the Company’s share capital, which represents more than two thirds of the shares held outside the Board. The Remuneration Committee reflected views expressed during this process in the new Policy and broader remuneration decisions, with an explanation of the reasoning behind them being given in the 2019 annual report. In particular, the Committee was conscious of investor concerns about increases in salary and other elements of remuneration which, when taken together, could represent a significant increase in maximum potential executive remuneration. The Committee was also conscious of differing shareholder views on restricted share awards. During the consultation, a large majority of shareholders supported the proposals, and this was reflected in the AGM vote.

Since the AGM, the Company has contacted a further eight shareholders who either voted against one or more of the resolutions or whose voting was unclear. Only a small number of these shareholders provided specific comments, and these were similar to points raised in the previous consultation.

The Committee developed the proposals because it believed that they were essential to maintaining the Company’s ability to retain, motivate and attract high quality executives over the period to 2023 and continues to believe they are appropriate. 

The Committee intends to continue to communicate with shareholders in respect of significant decisions on remuneration. In the light of the Committee’s assessment of the Company’s long term interests and of the strong shareholder support received, it intends to take no further action beyond its commitment to engage extensively with a wide cross section of shareholders in future consultations. A further update will be set out in the Company’s 2020 annual report.

Enquiries:

XP Power Duncan Penny, Chief Executive Officer +44 (0)118 976 5515Gavin Griggs, Chief Financial Officer +44 (0)118 976 5515

Citigate Dewe RogersonKevin Smith/Jos Bieneman +44 (0)20 7638 9571

Note to editors

XP Power designs and manufactures power controllers, the essential hardware component in every piece of electrical equipment that converts power from the electricity grid into the right form for equipment to function. XP Power typically designs power control solutions into the end products of major blue-chip OEMs, with a focus on the Industrial Electronics (circa 45% of revenue), Healthcare (circa 23% of revenue), Semiconductor Equipment Manufacturing (circa 19% of revenue) and Technology (circa 13% of revenue) sectors. Once designed into a programme, XP Power has a revenue annuity over the life cycle of the customer’s product which is typically 5 to 7 years depending on the industry sector. XP Power has invested in research and development and its own manufacturing facilities in China and Vietnam, to develop a range of tailored products based on its own intellectual property that provide its customers with significantly improved functionality and efficiency. Headquartered in Singapore and listed on the Main Market of the London Stock Exchange since 2000, XP Power is a constituent of the FTSE 250 Index. XP Power serves a global blue-chip customer base from 29 locations in Europe, North America and Asia. 

For further information, please visit xppower.com