Proxy Blog

Delta Air Lines, Inc.

May 26, 2020

The annual proxy for this airline had the following proposals: 

  1. Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposals on written consent, climate lobbying, political contributions, and sexual harassment 

Magni voted as follows: 

  1. For and against proforma proposals.
    For directors – The disclosures in the proxy 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 “say-on-pay” – The disclosures in the proxy meet the overall criteria in Magni’s policy on the advisory vote; however, the proxy documents the intent of the peer group to be larger, on average, than the company. The result is a potential upward bias in compensation levels 
  2. Against shareholder proposals.
    Written consent – Per the Magni position paperMagni routinely votes against these proposals.
    -Climate lobbying – The proposal does not meet the criteria in Magni’s policy on lobbying.
    -Political contributions  The proposal does not meet the criteria in Magni’s policy on lobbying.
    -Sexual harassment report – Sexual harassment is a serious issue. That said, this proposal is generic and does not cite any issue involving the company, though the proposal does cite a lack of disclosures addressing the company position on this matter. Other companies have experienced issues in this area, and the shareholder proposal makes sense in the proxies for those companies. Given the company’s high quality of governance, Magni voted against this proposal.