The annual proxy for this pharmaceutical company had the following proposals:
- Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote
- Shareholder proposal on written consent
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” – Though the peer group was listed, the criteria for the peer group was vague. Also, the company ranks in the 25th percentile of the peer group, thus potentially inflating compensation benchmarks above appropriate levels.
- Against shareholder proposal. Per the Magni position paper, Magni routinely votes against written consent proposals.