Proxy Blog

TJX

May 8, 2018

The annual proxy for this off-price discount retailer had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposals on:
    -Compensation disparities
    Claw back policy
    Prison labor 

Magni voted as follows: 

  1. Magni voted 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 demonstrated that the board has more than considered shareholder feedback on executive compensation. In addition, the proxy materials disclosed the benchmarking done on executive compensation, including listing the peer group used in the benchmarking.

  2. Magni voted against all shareholder proposals.
    -Compensation disparities  The company already receives high marks and awards for its diversity and gender programs.
    -Claw back policy – The company already has a strong claw back policy focused on pay received through falsified financials.
    -Prison labor – The proposal only identifies very unusual and hypothetical deficiencies in a company with an existing ban on prison labor.