REG-XP Power Ltd: Statement on 2020 AGM Votes on Remuneration

XP PowerAnnouncement

29/06/2020 07:05

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 5515
Gavin Griggs, Chief Financial Officer      +44 (0)118 976 5515

Citigate Dewe Rogerson
Kevin 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



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