Proxy Blog

Core Laboratories N.V. 

May 9, 2019

The annual proxy for this service provider of core and fluid analysis for the petroleum industry had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and compensation 
  2. Proforma European-style votes on approval of accounts and annual confirmation of authorities 

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 compensation – The proxy materials did not disclose any shareholder engagement efforts. The peer group was listed. The criteria for the peer group were competitors of similar size, but the metrics and numerical range for each of those metrics when determining “similar size” was not listed. Schlumberger was designated as a company of interest, but not in the peer group. The role of Schlumberger data in the compensation program was not disclosed. 
  2. For European proforma proposalsUnder US laws and regulations, these matters are handled by the board, thus the topics do not warrant votes by shareholders of US companies. Magni usually votes in support of these topics, unless some controversy or issue has arisen that requires additional investigation or justifies a vote against. No material controversies or issues were identified.