Proxy Blog

DuPont de Nemours, Inc. 

May 5, 2020

The annual proxy for this chemical products company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal on equity incentive plan 
  3. Shareholder proposals on employee board advisory position and lowering threshold for special meetings 

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” – The proxy does not disclose any benchmarking of the company against the criteria used for peer group. 
  2. For board proposal on incentive plan – Stock plans align the interests of the management team with the shareholders. 
  3. For and against shareholder proposals
    Against employee board advisory position – Generally, a company should have the latitude to suggest director candidates that best meet its interests. The shareholders then get the opportunity to approve (or reject) those candidates. The company receives a relatively high governance score. At this point, Magni does not see the need to require employee representation on the board, even on an advisory basis.
    -For lowering the threshold for special meetings – Per the Magni position paper, Magni routinely votes in favor of these proposals.