The annual proxy for this financial services company had the following proposals:
- Proforma votes on directors, appointment of auditors, and compensation
- Board proposals on director stock and employee stock purchase plans
Magni voted as follows:
- 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 executive compensation – 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.
- For board proposals on director and employee stock purchase plans – Stock plans align the interests of the board and management team with the shareholders, while employee purchasing of company shares is a good way to engage the employees in the long-term success of the company.