Proxy Blog

Xylem Inc. 

May 3, 2019

The annual proxy for this water technology company had the following proposals: 

  1. Proforma votes on directors, appointment of auditors, and “say-on-pay” advisory vote 
  2. Shareholder proposal on threshold for special meetings 

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 documented shareholder engagement activities where executive compensation was part of the discussion.  The peer group was listed, though the criteria for inclusion in the peer group was exceptionally vague and easily susceptible to gerrymandering. 
  2. For the shareholder proposal on lowering threshold for special meetings to 10%. Good governance means open communications with shareholders.