Proxy Blog

Republic Services, Inc.

April 27, 2021

The annual proxy for this waste management company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposal to incorporate ESG metrics into executive compensation 

Magni voted as follows: 

  1. For and against proforma proposals.
    For and against directors – The disclosures meet the criteria in our policy on election of directorsThere are two directors representing Bill Gates. One is sufficient. Of the two nominees, Mr. Handley has more overall business experience. We voted against Mr. Larson
    -For auditors – The company meets the criteria in our policy on auditor ratification.
    -Against advisory vote – The disclosures in the proxy did not meet the criteria in our policy on the advisory vote. 
  2. Against shareholder proposal to incorporate ESG metrics into executive compensation – ESG considerations are an important part of a successful company. That said, this company does well on the environment, social, and governance metrics we measure. Further, shareholders should have input on a company; however, shareholders are not a substitute for operating management. Unless there is a deficiency in ESG performance that can be documented, the shareholders should not be prescribing the components of compensation.