Proxy Blog

Fortive Corporation

May 4, 2020

The annual proxy for this industrial conglomerate had the following proposals: 

  1. Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal on eliminating supermajorities 

Magni voted as follows: 

  1. For and against the proforma proposals.
    For and against directors  Two of the directors are founders of Danaher and remain on the board, though only one is appropriate Steven Rales appears to have the stronger set of experiences. As with a year ago, Magni voted against Mitchell Rales.
    -For auditors  There appear to be no controversies with the financial statements of the company.
    -Against say-on-pay”  The lack of benchmarking of the company against the peer group means that shareholders do not have perspective on the appropriateness of the peer group. 
  2. For board proposal to eliminate supermajority voting requirements – Strong shareholder relationships mean avoiding governance structures that reduce or eliminate the impact of shareholder votes. Governance structures with supermajority voting requirements are inconsistent with strong shareholder relationships.