01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.4 Engagement outcomes Principles 7 9 03.4.4 Engagement topic: Fostering In 2022, we engaged 237 companies at good governance and transparency least once on a governance issue and Strong governance practices at continued our engagement focus on the Shaping sustainable pathways towards change investee companies are critical following topics: enablers of investment performance. With these practices in place, boards • Board composition, quality and Addressing overboarding and management can better address competence of board members; other topics that are highly relevant • Succession planning for chairpersons, with an Irish company to the business and investment case, directors, and executives; including environmental and social risks. • Independence and expertise of Overcommitment by directors is a including as chairman of another key committees; serious concern for investors as it can listed plc. We initially abstained on • Structure and quantum of executive compromise the quality of boards. the re-election until we could gather remuneration, including ESG KPIs in This is explicitly covered within additional information. Through follow- pay; and our global Corporate Governance up engagements with the company, • Shareholder rights, for example in the Guidelines which outline our position we received further details on the context of takeover-related matters or on what other commitments are roles of the chairman who had a capital issuance authorities. acceptable for a board member. positive track record of managing his businesses throughout the Covid- Since 2021, we have engaged with impacted period. Given the value and an Irish building materials supplier on experience he brought to the board, overboarding concerns. We considered we offered our qualified support and In 2022, we engaged with the chairman to be at risk given will keep the issue under review. 237 multiple external appointments, companies at least once on a governance issue. Allianz Global Investors Sustainability and Stewardship Report 2022 79