The annual proxy for this automotive parts retailer had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote
- Shareholder proposal on threshold for special meetings
Magni voted as follows:
- For and against all proforma proposals.
-For and against directors – Four of the directors are not independent. Only one (current or former) executive should be on the board. Given the family legacy in this business, it is fine to have one family member on the board. As a result, Magni voted against Larry O’Reilly and Rosalie O’Reilly Wooten, while voting for the rest of the candidates.
-For auditors – There appear to be no controversies with the financial statements of the company.
-Against “Say-on-pay” – The proxy materials did not discuss shareholder engagement efforts. The peer group was listed, but the process for determining the peer group was vague. The company needs real shareholder engagement and greater transparency about the process for selecting a peer group.
- For the shareholder proposal on lowering threshold for special meetings to 15%. Good governance means open communications with shareholders.