The annual proxy for this package delivery company had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say on pay” advisory vote
- Votes on shareholder proposals covering lobbying activities, voting power of class A stock, and contribution to climate change
Magni voted as follows:
- For and against proforma proposals.
-For directors – In a switch from last year, the company now has ownership guidelines for directors.
-For auditors – There appear to be no controversies with the financial statements of the company.
-Against “say on pay” – There is no benchmarking of the company against the peer group.
- For and against shareholder proposals.
-Against additional disclosure of lobbying activities – The proposal requested greater disclosure of lobbying activities. The shareholder is primarily focused on the company’s participation in industry organizations. Since the company has won awards for its transparency in this area and participation in industry organizations is good for the shareholders, Magni voted against the proposal.
-For reducing voting power of class A stock – Class A stock is used for employee ownership. These shares have much higher voting power than the class B shares available on the exchange. The company defends the practice by focusing on the benefits of employee ownership. There are benefits from the employee involvement and engagement. That said, the voting disparity means that class B shareholders have no power on issues. The company should be more accountable to the public shareholders.
-Against contribution to climate change – Sustainability is an important issue, and companies with strong governance tend to address sustainability. That said, this shareholder proposal was generic. The company has won many sustainability awards across a variety of related topics.