Proxy Blog

Cigna Corporation 

April 1, 2020

The annual proxy for this financial services company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposals on right to call special meeting and gender equity 

Magni voted as follows: 

  1. 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 lack of benchmarking of the company against the peer group prevents shareholder understanding of the appropriateness of the peer group members. 
  2. For and against the shareholder proposals.
    -For lowering the threshold for special meetings – Per the Magni position paper, Magni routinely votes in favor of these proposals.
    -Against proposal on gender equity – Gender equity is an important issue. That said, there are two reasons for voting against the proposal. The first is the use of generic and inaccurate information in the shareholder’s supporting statement, along with the proposal requiring the company to report a misleading metric for gender equity. The second is the company’s prior and current efforts to address gender inclusion. The company has made good progress and should be encouraged to continue with its current efforts.