The annual proxy for this oil and gas exploration company had the following proposals:
- Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote
Magni voted 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 disclosed a shareholder engagement program, but the level of activity was not disclosed, and it is not clear if executive compensation was part of the discussion. The peer group was provided and there was clear, though high level, criteria for inclusion in the peer group. The company needs greater disclosure of shareholder engagement activities and a table showing the performance of the company versus the peer group on relevant metrics.