Proxy Blog

Corteva Inc. 

April 2, 2020

The annual proxy for this agricultural chemical and seed company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposals on frequency of advisory votes and employee stock purchase plan 

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 proxy materials discussed a shareholder engagement program with compensation being one of the topics, though the level of activity was not disclosedThe peer group for compensation benchmarking was identified, though there was no benchmarking of the company against the peer group. 
  2. For board proposals.
    -Frequency of advisory votes – Most companies resolved this issue years ago and conduct annual votes. Magni supported the board recommendation of annual votes.
    -Employee stock purchase plan – Employee purchasing of company shares is a good way to engage the employees in the long-term success of the company.