The annual proxy for this consumer goods manufacturer had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote
Magni for all proforma proposals:
- 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.
Magni is glad the “battle of the proxies” is over and key shareholders do not feel compelled to establish a competing slate of directors.
- Auditors – There appear to be no controversies with the financial statements of the company.
- “Say-on-pay” Advisory Vote – The proxy materials demonstrated that the board has considered shareholder feedback on executive compensation, though much more shareholder engagement is expected. In addition, the proxy materials disclosed the benchmarking done on executive compensation, including listing the peer group used in the benchmarking.