The annual proxy for this manufacturing company had the following proposals:
- Proforma votes on directors and appointment of auditors, though no “say on pay” vote
Magni voted against proposals on the proxy.
- Against directors – While the disclosures in the proxy meet the literal criteria in Magni’s policy on election of directors, there is a lot of opaqueness that causes Magni to vote against all directors. First, the impact of the recent major transactions (including Gardner Denver) in reshaping the board was not discussed. Second, the newly formed board uses a class structure, thus hurting the relationship with the shareholders. Third, there is no “say on pay” advisory vote. Fourth, the proxy does not provide the opportunity to vote against any nominees. The choices are “for” or “abstain”. Technically, Magni voted “abstain”.
- Against auditors – While the company meets the criteria in Magni’s policy on auditor ratification, not providing an option to vote against director nominees is so inconsistent with good governance that Magni will vote against all proforma and board proposals.