The annual proxy for this pharmaceutical company had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote
- Shareholder and board proposals regarding lowering threshold for special meetings
Magni voted as follows:
- Magni voted for and against the 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. The compensation levels are set using a benchmarking process.
-For auditors. There appear to be no controversies with the financial statements of the company.
-Against “Say-on-pay” Advisory Vote. The proxy materials were opaque on benchmarking with no documented peer group. Transparency of executive compensation, including benchmarking of compensation structure and levels, is part of good governance.
- Magni voted for board and shareholder proposals on lowering threshold for special meetings. Strong shareholder relationships are part of good governance. Shareholders can be more engaged and feel more respected when the threshold for calling special meetings is low. The board proposal lowers the threshold to 20%. The shareholder proposal lowers the threshold to 10%.