Proxy Blog

Electronic Arts

July 15, 2019

The annual proxy for the video game 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. Board and shareholder proposals on 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 materials did not disclose any stockholder engagement activities. The peer group was listed, though the criteria were high level. The materials did not show a comparison of the company to the peer groups on relevant metrics. 
  2. For board proposalEquity incentive plans are a good tool for aligning management of a company with shareholder interests.  
  3. For board and shareholder proposals on lowering threshold for special meetings to 25% and 15%, respectivelyPer Magni policy, the company generally votes in favor of threshold reductions.