The annual proxy for this environmental services company had the following proposals:
- Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote
- Board proposal on employee stock purchase plan
Magni voted as follows:
- For and against all 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 had no information about shareholder engagement. The peer group was listed, and the criteria was mostly objective. The company needs shareholder engagement and should provide clarity on companies excluded from the peer group.
- For the board proposal on employee purchase plan – Employee purchasing of company shares is a good way to engage the employees in the long-term success of the company.