Proxy Blog

Ferrari NV 

March 19, 2019

The annual proxy for this luxury sports car manufacturer had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, executive compensation 
  2. Proforma European votes on annual authorities 
  3. Board proposal on cancellation of special voting shares 

Magni voted against all 18 proposals. There was no special document for the meeting. The annual report had to be used to understand the proposals. The independent auditor’s report included cryptic qualifications on the results of the audit. Audit reports should be clean and simple. In this case, cryptic qualifications are a source of concern as it is not clear what problems were found. The candidates for the board of directors were not presented and there were minimal materials on executive compensation. This level of opaqueness across multiple topics is inconsistent with good governance. Magni voted against every proposal as an indication of the need to substantial change.