The annual proxy for this airline company had the following proposals:
- Proforma votes on directors, the appointment of auditors, and executive compensation
- Shareholder proposal on eliminating supermajority voting requirements and two proposals related to lobbying and political activities
Magni voted as follows:
- For and against 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” advisory vote – A shareholder engagement program was not disclosed. The peer group was listed, and high-level criteria were disclosed; however, the company was not benchmarked against the peer group. Disclosure of the position of the company against the peer group is important transparency.
- Against shareholder proposals related to lobbying and political activity – The company already provides good disclosures of these activities. In addition, the proposals seek to limit participation in industry trade groups. Such groups are helpful to the company.