Proxy Blog


January 6, 2020

This management consulting and professional services firm’s annual proxy had the following proposals: 

  1. Proforma votes on directors and appointment of auditors 
  2. Proforma European votes on annual confirmation of authorities 
  3. Board proposal on amended share incentive plan 

Magni voted as follows: 

  1. Magni voted for all proforma proposals.
    -Directors – The board has a majority of independent directors, and the proxy materials explain the fit of the director nominees to the board’s needed skills. The compensation of directors is disclosed with a meaningful portion in equity where the equity has restrictions to align director incentives with long-term value creation. 
    -Auditors – There appear to be no controversies with the financial statements of the company.
    -“Say-on-pay” – The proxy materials disclosed significant shareholder engagement efforts. The peer group criteria were clear, while the peer group was listed, and the company was benchmarked against the peer group on key criteria. 
  2. For European proforma proposals. Under US laws and regulations, these matters are handled by the board, thus the topics do not warrant votes by shareholders of US companiesMagni usually votes in support of these topics, unless some controversy or issue has arisen that requires additional investigation or justifies a vote against.  
  3. For board proposal on equity incentive plan. Equity incentive plans are good tools for aligning management of a company with shareholder interests. The amendments to the existing plan are relatively minor and the changes are consistent with good governance.