↑
Eurofins Scientific
Stewardship principles Governance fit for purpose Continuously held since: 2023 Holding as at end 2025: 0.26 percent
Eurofins Scientific is a Luxembourg-based global leader in laboratory testing, operating in a highly decentralised structure with hundreds of subsidiaries. Our investment in Eurofins is underpinned by its strong founder-led culture and impressive track record of value creation.
| Engagement type | First engaged on the topic | Status |
|---|
| Encourage greater board independence to enhance effective governance and oversight | Influencing | 2023 | Ongoing |
We engaged with Eurofins' management and board, encouraging them to broaden the board's experience and increase its independence. This has included a mix of direct meetings and written correspondence with the company.
Strong, independent governance is vital for protecting minority shareholders, especially in founder-led businesses with complex structures, and for supporting long-term value creation. We had concerns regarding the level of independent oversight on the board, views which were echoed in the market.
The company appointed a new independent
non-executive director (NED) in March 2025,
somewhat addressing our concerns. We recognise
that change takes time and will seek to engage
with the company in the year ahead to see how
the new director is settling in and providing
effective challenge.
We're often drawn to founder-led businesses for their vision and drive. Our investment in Eurofins is backed by the vision of its founder, Gilles Martin. However, given the founder holds the chair and CEO roles, robust governance is essential, particularly as the company expands internationally and faces new challenges.
The company has been criticised for its board independence and broader governance practices, especially after a short seller report in 2024 raised questions about oversight and related-party transactions.
Before taking a holding, we recognised that Eurofins' board was heavily weighted towards Luxembourg, with limited international experience and few independent voices. While this structure had served the company well in its early years, we believed this could present a risk as the company grew.
Our stewardship journey with Eurofins has been one of constructive challenge and patient dialogue. We discussed succession planning and board composition in 2023 and 2024, emphasising the merit of having independent voices and a wider range of experience on the board. We made it clear that board independence is not a box-ticking exercise but rather supports board effectiveness and can be fundamental to long-term value creation.