Proxy Blog

Principal Financial Group, Inc.

May 8, 2019

The annual proxy for this financial services company had the following proposals: 

  • Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 

Magni 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 contained material stating a robust shareholder engagement program, however there was no discussion of activities. The peer group was listed, however the criteria was vague and subject to gerrymandering.