Proxy Blog

Baxter International Inc. 

April 6, 2020

The annual proxy for this health care company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposals on independent chairman and written consent 

Magni voted as follows: 

  1. 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” – The disclosures on the shareholder engagement program are fine. The peer group is listed, though the criteria is superficial and there is no benchmarking of the company against the peer group. 
  2. For and against the shareholder proposals. 
    -For independent chairman – Magni wrote a position paper regarding shareholder proposals for independent chairman. 
    -Against written consent. Per the Magni position paper, Magni routinely votes against written consent proposals.