Proxy Blog

AvalonBay Communities, Inc. 

April 21, 2020

The annual proxy for this real estate investment trust had the following proposals: 

  1. Proforma votes on directors, the appointment of auditors, and executive compensation 
  2. Shareholder proposal on eliminating supermajority voting  

Magni voted as follows: 

  1. For 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 disclosures on shareholder engagement and the peer group covered the key topics. 
  2. For shareholder proposal on eliminating supermajority voting requirements –Supermajority requirements isolate the board from the shareholders. Many of these provisions are a legacy of the 1980s