Proxy Blog

Arconic Inc. 

April 10, 2019

The annual proxy for this manufacturer of lightweight metal products had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal to amend the Stock Incentive Plan 
  3. Shareholder proposal on threshold for special meetings 

Magni voted as follows: 

  1. For and against all proforma proposals.
    -For 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 incentives with long-term value creation. 
    -For auditors – There appear to be no controversies with the financial statements of the company.
    -Against Say-on-pay” – The proxy materials contained a vague discussion of shareholder engagement effortsThere was a separate peer group for the CEO as opposed to the other named officers. The reasoning behind the separate peer groups was vague as well. The company needs to be more transparent. 
  2. For the board proposal on the equity plan as the plan is aligned with shareholder interests, the amendments are minor in nature, and having key people within the company focused on value creation is a good governance practice. 
  3. For the shareholder proposal on lowering threshold for special meetings 15%. Good governance means open communications with shareholders.