The annual proxy for this medical device company had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote
- Board proposal on majority vote in uncontested director elections
Magni voted as follows:
- 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 proxy materials did discuss shareholder engagement efforts, which included discussion of compensation. The peer group was listed, but the process and criteria were vague. The company needs objective criteria for the determination of the peer group.
- For board proposal on majority vote in uncontested director elections. The proposal arose during the company’s shareholder engagement efforts. The change is consistent with good corporate governance.