Proxy Blog

Pentair PLC 

April 6, 2020

The annual proxy for this water treatment company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and compensation 
  2. Proforma European votes on annual confirmation of authorities 
  3. Board proposal on share and incentive plan 

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. The compensation levels are set using a benchmarking process.
    -For auditors – There appear to be no controversies with the financial statements of the company.
    -Against executive compensation  The disclosures on the shareholder engagement program were stronger than last year. That said, the lack of benchmarking of the company against the peer group is still missing. 
  2. For European proforma proposals. Under US laws and regulations, these matters are handled by the board, thus the topics do not warrant votes by shareholders of US companiesMagni usually votes in support of these topics, unless some controversy or issue has arisen that requires additional investigation or justifies a vote against.  
  3. For board proposal on a share and incentive plan. Such plans align the interests of management, directors, and employees with the shareholders.