Proxy Blog

Fomento Economico Mexicano S.A.B. de CV

March 7, 2019

The annual proxy for this Mexican distributor of nonalcoholic beverages had the following proposals: 

  1. Proforma votes on directors 
  2. Proforma Mexican votes on annual confirmation of authorities 

Magni voted as follows: 

  1. Against all directors. Many members of the board are not independent. The board is very large and has a class structure to it. The lack of a proxy statement, as required by U.S. companies, means that governance matters are opaque. This combination of factors is not consistent with the transparent good governance practices of a well-run company. 
  2. Against all Mexican proforma proposals. The lack of a proxy statement (or equivalent) represents a level of opaqueness inconsistent with good governance. Despite being proforma and related to matters not requiring a vote in U.S. company proxies, Magni is voting against the proposals as a means of seeking greater transparency.