- Company’s supervisory board is now proposing a decrease in the 2019 dividend from US$0.24 to US$0.168 per share
- STmicroelectronics has recently announced its Q1 2020 financial report
STMicroelectronics (ST), a global semiconductor company, reported an update on its 2020 annual general meeting of shareholders (the 2020 AGM). Taking into account the increasing global societal and economic turmoil caused by the COVID-19 outbreak, ST’s supervisory board is now proposing a decrease in the 2019 dividend from US$0.24 to US$0.168 per share, with the authorization to consider, during September 2020, to increase such dividend up to a maximum of US$0.24 per share.
The company had recently reported first quarter net revenues of $2.23 billion, gross margin of 37.9 per cent, operating margin of 10.4 per cent, and net income of $192 million or $0.21 diluted earnings per share. The company has registered a 54.3 per cent year-over-year increase in its analog, MEMS and sensors group business during the first quarter of 2020.
“Our revenues came in about five per cent below the mid-point of our outlook when entering the quarter. The COVID-19 outbreak and subsequent containment measures by governments around the world brought challenges in our manufacturing operations and, especially in the last few days of the quarter, logistics. Our Q1 gross margin of 37.9 per cent was largely in line with our mid-point target,” Jean-Marc Chery, ST president & CEO had stated.
Resolutions ST will submit at 2020 AGM
The list of resolutions that ST will submit at the 2020 AGM include the distribution of a cash dividend of US$0.168 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of US$0.042 in each of the second, third and fourth quarters of 2020 and first quarter of 2021 to shareholders of record in the month of each quarterly payment.
The authorization to the supervisory board to consider during September 2020 to increase such authorized dividend up to a maximum of US$0.24 per outstanding share of the Company’s common stock.
The appointment of Ms. Ana de Pro Gonzalo as member of the supervisory board, for a three-year term expiring at the 2023 AGM, in replacement of Martine Verluyten whose mandate will expire at the end of the 2020 AGM.
The appointment of Mr. Yann Delabrière as member of the Supervisory Board, for a three-year term expiring at the 2023 AGM, in replacement of Mr. Jean-Georges Malcor whose mandate will expire at the end of the 2020 AGM.
The reappointment, for a three-year term expiring at the 2023 AGM, of the following members of the supervisory board: Heleen Kersten and Messrs. Alessandro Rivera, Frédéric Sanchez and Maurizio Tamagnini.
The adoption of the Company’s remuneration policy for the members of the supervisory board, in line with recent changes in Dutch corporate law and the EU’s shareholder rights directive.
The amendment of the Company’s remuneration policy for the Managing Board, in line with recent changes in Dutch corporate law and the EU’s shareholder rights directive; and the re-appointment of EY as external auditor for the 2020, 2021, 2022 and 2023 financial years.
