LONDON (Reuters) - Shareholder adviser Hermes EOS said on Wednesday it had recommended clients vote against the election of two candidates to the supervisory board of carmaker Volkswagen (VOWG.DE) and called for a review of the company’s corporate culture.
Hermes, which helps guide the voting choices of pension funds and others with 336.1 billion pounds ($458 billion) in assets, said it recommended its clients reject the election of Marianne Heiss and Wolfgang Porsche at the company’s annual meeting on May 3.
“The election of the candidates will result in a board with almost zero independent representation, which clearly goes against good corporate governance practice,” Michael Viehs, Associate Director of Responsibility, said in a statement.
Instead, Hermes said it wanted the company to create an external supervisory board and undertake a review of the company’s corporate culture.
($1 = 0.7339 pounds)
Reporting by Simon Jessop, editing by Sinead Cruise