Proxy Blog

Illumina, Inc. 

May 9, 2019

The annual proxy for this provider of integrated scientific systems had the following proposals: 

  1. Proforma proposals on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal to declassify the board 
  3. Shareholder proposal on election-related disclosures 

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 shareholder engagement efforts. The peer group was listed, though there were no criteria for inclusion in the group. 
  2. For board proposal. Last year’s nonbinding shareholder proposal to declassify the board received 78% of the votes. The board has proposed an amendment to implement the prior shareholder voteHaving all directors stand for election every year is good governance. 
  3. Against shareholder proposal – The company is very clear about its policies to limit political involvement, including a lack of political contributions. The shareholder proposal does not identify any instances of the company not abiding by its stated policies or the defects in those policies.