Proxy Blog

Baxter International Inc. 

April 18, 2019

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 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 company provides clear description of shareholder engagement activities. The company should be commended for its use of an index to form its peer group. An index has publicly available constituents and is not subject to board gerrymandering. 
  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.