Proxy Blog

Waste Management, Inc. 

May 3, 2019

The annual proxy for this environmental services company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposal to restrict accelerated vesting of equity award upon a change in control 

Magni voted as follows: 

  1. 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 engagementThe 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. 
  2. Against the shareholder proposal to restrict accelerated vesting of equity awards upon change of controlSelling a company for a high valuation is a good outcome for shareholders. Employees with equity awards should be able to participate in that outcome. It is an alignment of interests. The restriction would move in the opposite direction.