Proxy Blog

Cummins Inc. 

April 20, 2021

The annual proxy for this power equipment company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposal on professional services allowance 

Magni voted as follows: 

  1. For and against proforma proposals.
    For directors – The disclosures 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 shareholder proposal on professional services allowance  Companies in our portfolios have some level of good governance. Generally, we are reluctant to intervene in operational issues in well-governed companies. Further, this proposal impacts a tiny proportion of compensation. We are voting in favor of the proposal to express our disapproval at the weak disclosures regarding shareholder engagement and the peer group used for compensation.