Proxy Blog

Covetrus, Inc. 

April 14, 2020

The annual proxy for this animal health company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal on frequency of advisory vote 

Magni voted as follows: 

  1. For and against all 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 had no information about shareholder engagementThe peer group was listed with very vague criteria. There was no benchmarking of the company. 
  2. For annual votes on the board proposal regarding frequency of “say on pay” votes. Annual feedback from shareholders is good.