Proxy Blog

BHP Billiton 

October 2, 2018

BHP, formerly known as BHP Billiton, is a multinational mining, metals, and petroleum company. The annual proxy contained proforma proposals. The Annual Report and Notice of Meeting had sufficient information to guide voting. 

Magni voted as follows: 

  • For proforma financial and share-related proposals. The financial records appeared to be in order, and there were no apparent controversies. At least some good governance practices, such as rebidding audit contracts, are in place. 
  • Against three remuneration proposals. The company discloses a peer group, and benchmarks share performance against the peer group, but does not benchmark compensation. The company performance has not been strong, yet there was a significant payout of incentive pay. The stock has underperformed against the market and against the peer group for several years, though recent performance was roughly consistent with the market. 
  • For the slate of candidates presented. All non-executive directors are independent, and the slate contained a useful mix of skills.