Proxy Blog

Valero Energy Corporation 

April 6, 2020

The annual proxy for this petrochemical company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Board proposal on omnibus stock incentive plan 

Magni voted as follows: 

  1. For and against proforma proposals.
    -For 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. 
    -For auditors – There appear to be no controversies with the financial statements of the company.
    -Against Say-on-pay” – The proxy materials discussed a shareholder engagement program with compensation being one of the topics, though the level of activity was not disclosed. The peer group for compensation benchmarking was identified, though there was no benchmarking of the company against the peer group. 
  2. For board proposal. Share ownership is a good way to engage the stakeholders in the long-term success of the company.