The annual proxy for this bank holding and financial services corporation 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.
- Auditors – There appear to be no controversies with the financial statements of the company.
- “Say-on-pay” Advisory Vote – The proxy materials state that the board has more than considered shareholder feedback on executive compensation, though there is little specificity. The proxy materials also disclose the peer group, though the criteria for selection is more subjective than Magni best practices in good corporate governance recommends. Overall, the executive compensation practices are acceptable, though there are improvement opportunities.