The annual proxy for this manufacturer of tools and hardware had the following proposals:
- Proforma votes on directors, the appointment of auditors, and executive compensation
- Special vote on a board proposal on written consent
Magni voted as follows:
- 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.
-Auditors – There appear to be no controversies with the financial statements of the company.
-“Say-on-pay” – The shareholder engagement is disclosed, and the proxy makes specific reference to executive compensation being part of these discussions. The peer group is disclosed, though the proxy should contain more objective criteria for the peer group. The company is a little smaller than the average of the peer group. That is disconcerting, though the amount is small enough to be acceptable. Hopefully, shareholders will provide such feedback as part of the engagement meetings. The practices are sufficiently consistent with good governance for Magni to approve.
- Against board proposal. Per the Magni position paper, Magni routinely votes against these proposals.