The annual proxy for this electric and natural gas utility had the following proposals:
- Proforma votes on directors, the appointment of auditors, and executive compensation
- Board proposal on stock plan for outside directors
Magni voted as follows:
- 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” advisory vote – Disclosures on shareholder engagement and the peer group were adequate, though both the activity level in the shareholder engagement section and the benchmarking against the peer group were vague. To get Magni’s vote next year, the disclosures will need to be more precise.
- For board proposal on stock incentive plan. Independent directors should own company shares, and this program makes that easier.