September 2018

Why is Brexit Like a Soap Opera?  At an informal summit in Salzburg, Austria, the 27 other European Union leaders rejected Prime Minister Theresa May’s Chequers plan for the UK’s exit from the EU. The UK proposal calls for a free trade zone and common rule book for goods between the UK and EU with greater divergence allowed for services. However, it was seen as unworkable because it crosses an […]

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BRF S.A. 

BRF S.A., a Brazilian food company, provided a special proxy. This proxy had six board proposals to change company bylaws. The changes are required based on Novo Mercado regulations and the Brazilian Code of Corporate Governance. Brazil appears to be requiring better corporate governance of publicly-held companies.  Magni voted for all of the proposals. The changes are extensive. To the company’s credit it supplied the document detailing every change with a color-coding system so the shareholder could understand the reason for the change. The changes do […]

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Magni’s Position on Proxy Proposals for Lobbying Disclosure 

October 29, 2018   Magni votes company proxies on behalf of clients and is guided in its votes by applying corporate governance best practices as described in Magni’s Sustainable Value Creation principles.  Company proxies often have a shareholder proposal regarding better lobbying disclosure. Company boards tend to resist increased disclosure, and often the boards declare that existing disclosures are adequate.  Disclosure is an important part of good governance. Lobbying disclosure is about both the board’s stewardship of company assets […]

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Sysco

The 2018 annual proxy for this foodservice distributor had the following proposals:  Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote  Shareholder proposals on limiting accelerated vesting of equity awards  Magni voted as follows:  Magni voted for all proforma proposals. -Directors. The board has a majority of independent directors and some have CEO/CFO experience with other companies. The compensation of directors is disclosed with a meaningful portion in equity where the equity has restrictions to align director […]

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The Clorox Company 

The 2018 annual proxy for this consumer and professional products company had the following proposals:  Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote  Board proposal to remove supermajority requirements from bylaws  Magni voted as follows:  Magni voted for all proforma proposals. -Directors – The board has a majority of independent directors and some have CEO/CFO experience with other companies. The compensation of directors is disclosed with a meaningful portion in equity where the […]

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Magni’s Position on Proxy Proposals for Lowering Threshold on Special Meetings

October 15, 2018 Magni votes company proxies on behalf of clients and is guided in its votes by applying corporate governance best practices as described in Magni’s Sustainable Value Creation principles. Company proxies often have a shareholder proposal to lower the threshold for special meetings. Company boards tend to resist lowering the threshold for special […]

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Lam Research

The annual proxy for this manufacturer of semiconductor processing equipment had the following proposals:  Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote  Board proposal to adopt amendment to a 1999 Employee Stock Purchase Plan  Magni voted as follows:  Magni voted for all proforma proposals. -Directors – The board has a majority of independent directors and some have CEO/CFO experience with other companies. The compensation of directors is disclosed with a meaningful portion […]

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Automatic Data Processing

The annual proxy for this provider of human resources software and services had the following proposals:  Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote  Board proposal to adopt 2018 Omnibus Award Plan  Magni voted as follows:  Magni voted for all proforma proposals. -Directors – The board has a majority of independent directors and some have CEO/CFO experience with other companies. The compensation of directors is disclosed with a meaningful portion in equity where the […]

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TJX

The proxy for a special meeting of this discount retailer had the following proposal:  Increase the authorized shares by 50%  Magni voted for the proposal. A 2-for-1 stock split had been declared but insufficient shares were available for the split. A stock split does not impact Magni’s assessment of the company for adherence to best practices. The explanation for the need to increase authorized shares, along with the simple and clear reconciliation of existing shares, justifies the […]

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BHP Billiton 

BHP, formerly known as BHP Billiton, is a multinational mining, metals, and petroleum company. The annual proxy contained proforma proposals. The Annual Report and Notice of Meeting had sufficient information to guide voting.  Magni voted as follows:  For proforma financial and share-related proposals. The financial records appeared to be in order, and there were no apparent controversies. […]

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