BB&T Corporation Acquisition of SunTrust, Inc.
The proxy had three proposals related to this financial services merger:
- To approve the merger
- To approve, on advisory basis, the executive compensation
- To approve adjournment or solicitation of additional proxy votes prior to adjournment of the special meeting
Magni voted for the merger and for the adjournment. The transaction occurs at a significant premium to the share price that existed prior to announcement of the merger. Capturing the higher valuation is in the interest of shareholders. The adjournment vote is pro forma in nature.
Magni voted against the executive compensation. The “golden parachute” provisions of the executive compensation are significant. The leaders do deserve compensation for increasing shareholder value, however the amounts per their contracts are too high.