Activist investor Active Ownership Capital is intensifying pressure on German meal-kit company HelloFresh SE ahead of its annual general meeting (AGM), as shareholder dissent over executive compensation mounts for the third consecutive year, according to a report by Bloomberg.
The firm, HelloFresh’s largest shareholder with a 7.7% stake as of the end of 2024, is demanding stricter cost discipline and alignment between executive pay and performance. This comes after shareholders rejected HelloFresh’s remuneration reports for fiscal years 2021 through 2023, despite a revised compensation system introduced in 2022.
Support for the company’s “Say on Pay” proposals has eroded sharply – from 42% approval for 2021’s report to just 37% for the past two years – placing HelloFresh in rare territory. According to Bloomberg data, fewer than 0.8% of over 52,000 compensation proposals globally have seen such low support.
Earlier this year, Active Ownership Capital reportedly urged HelloFresh to pursue up to €560m ($640m) in cost reductions, according to WirtschaftsWoche. In a move that signals deeper engagement, Founding Partner Florian Schuhbauer has been nominated to join the company’s supervisory board.
At its March capital markets day, HelloFresh outlined a €300m cost-saving plan to be implemented by 2026, with 70% of the measures due by end-2025. The strategy focuses on higher-margin customer segments and more disciplined marketing spend, but some investors remain unconvinced.
“Shareholders are clearly sending a message,” said Filippo Ercole Piva, analyst at Alphavalue. “Rejecting pay packages reflects broader concerns about oversight and accountability.”
Large institutional investors including the State Board of Administration of Florida and Norway’s sovereign wealth fund – a 5.1% shareholder as of November – have both disclosed intentions to vote against the remuneration report. The Norwegian fund cited “concerning pay practices” and a lack of response to shareholder feedback.
