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 to approve the Global Omnibus Stock Purchase Plan
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. The aspects of the board are sufficient for Magni to approve. That said, the proxy does not mention any long-term components (e.g., share ownership requirements), and the company should consider such a change.
-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. Hopefully shareholders will provide such feedback as part of the engagement meetings. The practices are sufficiently consistent with good governance for Magni to approve.
- For board proposal. The stock purchase plan is generally consistent with good governance.