Proxy Blog

DTE Energy Company 

April 7, 2020

The annual proxy for this energy company had the following proposals: 

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

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” Advisory Vote – The disclosure regarding the shareholder engagement is fine. Though the peer group was disclosed, the criteria were high level and the company was not benchmarked against the group. 
  2. Against the shareholder proposal on political disclosure – Magni routinely votes against these sort of proposals as most of the proposals are generic without citing deficiencies of the company and most companies do a good job of disclosing relevant information. This company has had a history of weaker disclosure. In the past year, the disclosure has improved. Magni will vote against the proposal, though continued improvement is expected.