Proxy Blog

Adobe Inc. 

March 8, 2019

The annual proxy for this computer software company had the following proposals: 

  1. Proforma votes on directors and appointment of auditors 
  2. Special vote on board proposal to adopt a 2019 Equity Incentive Plan 
  3. Shareholder proposal on gender pay equity 

Magni voted as follows: 

  1. 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 incentives with long-term value creation. The compensation levels are set using a benchmarking process.
    -Auditors – There appear to be no controversies with the financial statements of the company.
    -“Say-on-pay” – The shareholder engagement and peer group disclosures indicate good governance practices in executive compensation. 
  2. For the board proposal. The 2019 Equity Incentive Plan replaces a 2003 plan. Using equity as compensation aligns the interests of directors, executives, managers, and even employees with the interests of the shareholders. 
  3. Against the shareholder proposal. Gender equity is an important issue. That said, there are two reasons for voting against the proposal. The first is the use of generic and inaccurate information in the shareholder’s supporting statement, along with the proposal requiring the company to report a misleading metric for gender equity. The second is the company’s prior and current efforts to address gender inclusion. The company has made good progress and should be encouraged to continue with its current efforts.