FRANKFURT, April 27 (Reuters) - Shareholders of Deutsche Boerse should ratify the actions of its management and supervisory boards at its annual general meeting next month, influential adviser Institutional Shareholder Services (ISS) has said.
German companies typically ask their shareholders to approve the actions of their boards over the previous year at the annual shareholder meeting.
The issue at Deutsche Boerse emerged when it became public earlier this week that Glass Lewis, another shareholder adviser, recommended that shareholders not ratify the boards’ actions.
The recommendation came amid concerns over a failed merger with the London Stock Exchange Group and due to a pending investigation into chief executive Carsten Kengeter over possible insider trading.
But ISS, in a report to investors dated Wednesday, said such a move would be rash.
“In our view it would be premature for shareholders to consider what would be a hugely significant symbolic gesture by voting against discharge given the lack of clarity at this time, particularly in light of the fact that the discharge resolution is essentially a highly symbolic vote of confidence in Germany,” ISS said.
“Nevertheless, it should be acknowledged that the situation is evolving, and ISS may recommend against discharge in future if the German authorities bring charges against the CEO or in case of other significant concerns.”
Kengeter denies the allegations, and has said that he and the company are cooperating fully with the public prosecutor. (Reporting by Tom Sims; Editing by Maria Sheahan)