Proxy Blog

Applied Materials, Inc.

February 12, 2020

The annual proxy for this provider of equipment, software, and services for the semiconductor industry had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal on written consent 

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. 
    -Auditors – There appear to be no controversies with the financial statements of the company.
    -“Say-on-pay” – The proxy disclosed a shareholder engagement program, the activity, and the scope of discussions. The proxy also disclosed high-level criteria for the peer group, the members of the peer group, and benchmarking of the company against the peer group members. 
  2. Against board proposal on written consent. Per the Magni position paper, Magni routinely votes against these proposals.