Proxy Blog

Core Laboratories 

May 3, 2018

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

Magni voted as follows 

  1. Magni for all 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. The compensation levels are set using a benchmarking process.
    -Auditors – There appear to be no controversies with the financial statements of the company.
    -“Say-on-pay” Advisory Vote – The proxy materials demonstrated that the board has more than considered shareholder feedback on executive compensation. In addition, the proxy materials disclosed the benchmarking done on executive compensation, including listing the peer group used in the benchmarking.

  2. Magni for all European-style proforma proposals. Under 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.