ZURICH, Reuters – Swiss Re (OTC), shareholders are being urged to oppose the re-election by Chairman Sergio Ermotti at this year’s annual general meeting of the reinsurance firm. The Financial Times reported Wednesday.

Institutional Shareholder Services, a proxy adviser, has recommended that shareholders not appoint Ermotti as a “signal to concern” about the insufficient gender diversity of the reinsurer’s board.

After a nine year stint as the Chief Executive of UBS, Switzerland’s largest bank UBS for nine years Ermotti was appointed to Swiss Re in October 2020. In 2021, he was elected chairman.

According to the FT ISS took issue with Swiss Re in its report prior to April 13’s vote. It claimed that the company failed to fulfill its diversity pledges and fell short of industry standards of having at least 30% women on boards.

According to Reuters’ invitation to the AGM, three women have been elected to the twelve-strong Swiss Re board. This would provide a 25% representation.

ISS supports the appointments to the remaining board members and reports that Ermotti should be voted against “because the board lacks sufficient gender diversity,” according to the FT.

ISS didn’t immediately reply to a request of comment.

Proxy advisers, such as ISS, have an influence on passive investors and large institutional clients who frequently follow their recommendations.

Swiss Re stated that it considers gender diversity “of the greatest importance” when composing its boards and is committed to reaching the goal of 30% by the 2023 AGM.

In a statement, Swiss Re stated that it embraces diversity and equity at Swiss Re.

“We believe Mr Ermotti’s calm approach to succession planning is the right thing for both shareholders and Swiss Re.