Proxy Blog

Cisco Systems, Inc.

November 12, 2020

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

  1. Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposals to incorporate in Delaware and approve stock incentive plan 
  3. Shareholder proposal on independent chairman 

Magni voted as follows: 

  1. For and against proforma proposals:
    For directors – The disclosures in the proxy meet the criteria in Magni’s policy on election of directors.
    -For auditors – The company meets the criteria in Magni’s policy on auditor ratification.
    -Against advisory vote – The disclosures in the proxy did not meet the criteria in Magni’s policy on the advisory vote. 
  2. For board proposals
    Incorporate in Delaware – This sort of proposal is not common. Delaware is a popular place for incorporationThere is nothing is the state’s statutes or regulations which inherently lead to good or bad corporate governance. Magni defers to the recommendation of the company’s board.
    -Stock Incentive Plan – Per Magni policy, Magni  votes in favor of many of these proposals. 
  3. For shareholder proposal on independent chairman – Per the Magni position paper, Magni routinely votes for these proposals.