Good morning. Welcome to the 888 Holdings PLC Annual General Meeting. Throughout this recorded meeting, attendees will be in listen-only mode. I'd now like to hand you over to Lord Jon Mendelsohn, Chairman. Good morning to you, sir.
Good morning. I am Lord Mendelsohn, Executive Chair of 888 Holdings. It is now 9:00 A.M. here in London, and I'm delighted to welcome you to the 2023 Annual general meeting. I'm also very pleased to welcome shareholders who have chosen to follow the proceedings over the online Investor Meet Company platform. Shareholders are invited to submit any questions over the online platform. We will aim to respond to questions relevant to the business of the meeting and those which have been submitted in advance. Shareholders not able to attend in person and wishing to vote at the meeting have been strongly encouraged to do so by completing a form of proxy or a form of direction as appropriate. Again, just a reminder, shareholders are not able to vote over the online platform.
I would like to introduce you to my colleagues here today, to Yariv Dafna, the Chief Financial Officer, Mark Summerfield, an Independent Non-executive Director, Andria Vidler, an Independent Non-executive Director, and Ori Shaked, a Non-executive Director. The business of the meeting is set out in the notice of the annual general meeting. With your consent, I would like to take the notice of meeting as read. Good. Thank you. I will now explain the procedures for dealing with today's business. During the meeting, resolutions will be proposed before they are put to the meeting. Any questions from the floor must be asked when the business is on the table. We will respond to questions asked over the Investor Meet Company platform and which are relevant to the business of the meeting at the time of reading the relevant resolution.
Indeed, people should be aware that at any time and in advance, questions can be submitted through the platform. Only shareholders can ask questions. The meeting can only consider matters detailed in the notice of meeting. In accordance with Article 102 of the company's articles of association, I, as Executive Chair, will enforce all resolutions put to the meeting will be decided by poll. Only shareholders or their proxies may vote, and the scrutineer today will be the Company Secretary, Elizabeth Bisby. In accordance with Article 109 of the company's articles of association, every shareholder shall have one vote for each share of which they are the registered holder. If shares are in joint names, then only the first name shareholder may vote.
Regarding shareholders who have sent a form of proxy to the company's registrars appointing me to vote on their behalf, I will vote on each motion in the manner instructed on their forms of proxy, or where the form is left blank, at my discretion. Votes cast will be verified against the register of members, and the results of each poll will be announced as soon as possible and will be published on the company's website. The necessary quorum being present, I now declare the annual general meeting open. The first item of business is to receive the annual report and accounts 2022. I now call upon Angelique Linares on behalf of EY to confirm the contents of the report of the auditors to the members as set out in the annual report and accounts.
I confirm.
Thank you. The report and accounts in respect of the year ended 31st December 2022 have been circulated and made available to members for the statutory period. I will address any shareholder questions on the report and accounts. There being no further questions, I now propose as an ordering resolution that the annual report and accounts for the period ending 31st December 2022 and the reports of the directors and auditors thereon be and are hereby received and approved. Members present may now vote. Very good. We now move to the remuneration report other than that part containing the remuneration policy. May I remind shareholders that the remuneration report has been prepared on a voluntary basis, and I open the floor for shareholders' questions on this. Are there any questions?
There being no further questions, I propose as an ordering resolution that remuneration report other than the part containing the remuneration policy contained in the annual report and accounts 2022 be and is hereby approved. Members present may now vote. Thank you. Now on the election and re-election of directors. As required by the Articles of Association of the company, all of the directors are retiring and standing for election or re-election this year. These are resolutions numbered three to 10. I will address any shareholder questions on the election or re-election of directors. Are there any questions? There being no further questions, I propose the election or re-election of each of the directors set out in the notice of meeting, each as an ordinary resolution.
That I, Jon Mendelsohn, Anne de Kerckhove, Mark Summerfield, Limor Ganot, and Yariv Dafna, recommended as Directors by the Board, be and are hereby Re-elected as Directors of the Company. That Andrea Gisle Joosen, Andria Vidler, and Ori Shaked, recommended as directors by the board, be and are hereby elected as Directors of the company. The next matter is resolution number 11, the reappointment of the auditors, and this is the resolution that Ernst and Young LLP and EY Limited, Gibraltar, be and are hereby reappointed as auditors for the purposes of meeting the company's statutory requirements. I open the floor for any shareholder questions relating to this.
There being no further questions, I propose the passing of resolution number 11 to reappoint Ernst and Young LLP and EY Limited, Gibraltar as company's auditors as set out in a notice of meeting as an ordinary resolution of the company. Members present may now vote. The next matter is resolution number 12, the remuneration of the auditors. The audit committee is authorized to agree the remuneration of the auditors. I will address any shareholder questions on this. There being no further questions, I propose the passing of resolution number 12 as set out in the notice of meeting to authorize the audit committee to agree the remuneration of the auditors as an ordinary resolution of the company. Members present may now vote.
Resolution 13, it relates to the power to issue shares, and it's to renew the directors' authority to allot relevant securities in line with U.K. institutional shareholder guidelines as set out in the notice of the meeting. This authority will expire upon the earlier of, one, the conclusion of the next annual general meeting of the company after the passing of this resolution, and two, 30th June, 2024. I note that the directors have no present intention of exercising this authority and that the company does not hold any shares in treasury. I will now take any shareholder questions on this. I propose the passing of resolution number 13 to authorize the board to allot relevant securities as set out in the notice of meeting as an ordinary resolution of the company. Members present may now vote.
Resolution 14 is to provide authority to the directors to introduce a new long-term incentive plan. The principal terms of the proposed LTIP are described in appendix one to the notice of meeting, and a copy of the plan rules have been available for inspection. I will address any shareholder questions on this now. Yes.
Tangentially, associated to this, it might be better to ask at the remuneration stage, but do you mind if I ask it?
Please.
Great. My name is Clive, and I'm attending on behalf of ShareAction, who are a Shareholder in this company. My question relates to the company's approach to remuneration and the Living Wage, as well as executive pay. With inflation running at 10.4% in February 2023 and the price of goods and services rising even faster, and many low-income households who are already buckling under the pressure of the cost of living. 7.2 million are going without basic goods and services, and 4.7 million are behind on payments. Worse still, living standards will continue to fall this year. In this context, prioritizing your lowest paid staff meeting the cost of living has never been more important.
It was therefore highly encouraging to read in your annual report that 888 Holdings has increased the hourly pay rate for U.K retail staff to a minimum of GBP 10.90, reflecting the Real Living Wage outside of London. Paying a living wage is one of the most important steps that companies can take. However, becoming a Living Wage accredited employer will go further to ensuring that all of your staff are guaranteed a Real Living Wage now and in future years. You would be ensuring that both your directly employed and regular third-party contracted staff receive the Real Living Wage as a minimum. In the current context, this is really crucial. Third-party contracted workers are often in low-paid roles such as cleaning and security, are particularly exposed to the rising cost of living. More and more companies are making this commitment.
12,000 employers are now Living Wage accredited. 55 of which are in the FTSE 100. Investors, too, are keen to see companies taking this step. ShareAction Good Work programme coordinates a coalition of institutional investors with GBP 3.7 trillion in assets under management, who are supporting the Living Wage and encouraging companies to take this step. This is not only because it's the right thing to do, but also because it's been demonstrated that paying the Living Wage can boost recruitment, staff relations, and increase commitment from your employees. I therefore wish to ask whether the company would consider demonstrating your commitment to your lowest paid workers by becoming a Living Wage accredited employer.
Relatedly, given the widening pay ratios within the company can have a negative impact on workforce motivation, will 888 Holdings show restraint in setting the remuneration package for its incoming CEO?
Thank you very much for that question. I'm not sure. Was that heard adequately online? What would probably be helpful if I just took the last bit, because we had a very good case made that was justifying the elements of the question. The question centered on two particular points, that would we become an accredited employer, an accredited Living Wage accredited employer? And would we exercise a look at the pay ratios, restraints, and other matters when we set the payment for the incoming CEO? Thank you very much for those very important questions.
Can I just first say that I'm very grateful that you noted that the pay arrangements that we put in for this year were particularly targeted to those people who would be most affected by some of the cost of living issues that are being faced by people in the company. Particularly the density of the people we have in the United Kingdom, or, you know, whilst we do have a number of sites across the world with varying degrees of economic circumstance, there was a particular problem in the United Kingdom. We were very keen that our colleagues who work so well and so hugely, extraordinary. How well they work with that was properly acknowledged. That is a very important part for us.
I will certainly be happy to look into the situation about becoming an accredited employer, and I will take that forward, but I will not give an undertaking today. I haven't studied it, but I'll be happy to do that. When it comes to the setting of the pay of the incoming chief executive, it will be commensurate with the type of person that we're facing. What that doesn't mean is that we have no regard to issues about inequalities or we have no regard to issues about widening pay gaps or other sorts of things. We will certainly, in the ambition that we have to have a chief executive that is fit for the future and for the long-term ambition of this company, set that with regard to what that pay is.
We will not be blind to the issues that are affected around it and that come into play as a result of it. We will not ignore those. We will not be setting it arbitrarily. We are clearly looking for someone of significance and quality, and that will be something which we'll have to justify to shareholders later, so we'll be very conscious of it. Thank you very much for raising those questions. Are there any further questions? There being no further questions, I propose the passing of resolution number 14 to authorize the directors to introduce the LTIP assets out in the notice of meeting as an ordinary resolution of the company. Members present may now vote. Thank you. I now turn to special business to be considered at the meeting.
Resolution number 15 seeks to authorize the company to make market purchases of its ordinary shares, subject to the conditions set out in the notice of meeting. This authority will expire upon the earlier of, one the conclusion of the next annual general meeting of the company after passing this resolution, and 2, June 30th 2024 , save certain exemptions as set out in the notice. I note that the directors have no present intention of exercising this authority. I will address any shareholder questions on this. I propose as a special resolution number 15 to authorize the company to make market purchases of its ordinary shares as set out in the notice of meeting. Members present may now vote.
Resolution number 16 seeks to renew the general authority of the directors to allot certain equity securities cash, as if Articles 19 - 26 of the company's articles of association did not apply to any such allotments. This authority will expire upon the earlier of, one, the conclusion of the next Annual General Meeting of the company after passing this resolution, and 2, June 30th 2024 , save certain exemptions as set out in the notice. I note that the directors have no present intention of exercising this authority. I will address any shareholder questions on this. I propose as a special resolution number 16 to empower the board to disapply pre-emption rights as set out in the notice of meeting. Members present may now vote.
Resolution number 17 requests further shareholder approval by way of separate special resolution for the directors to allot equity securities for cash without first being required to offer such securities to existing shareholders and will expire on June 30th 2024, or at the conclusion of the next annual general meeting of the company after the passing of this resolution, whichever is the earlier. I open the floor for shareholder questions on this. I propose that a special resolution number 17 to provide additional authority to the board to disapply pre-emption rights as set out in the notice of meeting. Members present may now vote.
The final resolution for today is resolution number 18, which requests shareholder approval by way of a special resolution to amend the company's articles of association to change the U.K. address of the company stated in clause four of the document to the company's London office address. I will address any shareholder questions on this. I propose a special resolution number 18, to amend the memorandum articles of association as set out in the notice of meeting. Members present may now vote. Ladies and gentlemen, that concludes the business of the 2023 annual general meeting of your company. I therefore declare the formal meeting closed. The results of each poll will be announced as soon as possible and will be published on the company's website. Thank you for joining us this morning. Have a good day.
Thanks to the 888 board for updating attendees today. Could I please ask attendees not to close this session, as you'll now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations. This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the board of 888 Holdings plc, we'd like to thank you for attending today's Annual General Meeting. Good morning to you all.