SHARE this week released a proxy advisory regarding environmental, social and governance (ESG) issues that may be of concern to shareholders in the Tim Hortons-Burger King merger proposal.
In a joint proxy circular issued earlier this month, Tim Hortons and Burger King Worldwide described details of a deal touted as the largest restaurant merger in history, creating a post-merger entity with combined global sales of $23 billion and with 18,000 restaurant locations in 98 countries.
- Inherited reputational risks from BKW’s U.S. employment practices
- Differences in sustainability reporting between the two companies;
- Potential job losses and decreased tax contributions;
- Lack of independent directors;
- Excessive executive compensation
- SHARE asks if the combined company will continue and expand THI’s practice of issuing regular sustainability reports for investors based on GRI indicators.
- How will reputational risks from Burger King’s employment practices in the U.S. impact on the combined company’s value?·
- Will 3G Capital and Burger King be making specific commitments regarding retention of employees at company-controlled facilities in Canada?·
- What will be the merged company’s approach to Canadian taxes?
- Will the company commit to nominating
independent directors to at least two-thirds of the board of the new company
after the merger?