I recently attended the Winter Meeting of the Council of Institutional Investors and thought you would like to know what the Council and its members are thinking.
What was NOT discussed – proxy access
First, one dog that didn’t bark was proxy access. There was virtually no mention of the subject. I can only assume that proxy access has been adopted by a sufficient number of companies that it is no longer controversial or even worth discussing.
Coming to a company near you – majority voting…
What was worth discussing was majority voting in uncontested director elections, and if you are a mid- or small-cap company, you’d be well advised to think about it. Among other things, the Council sent a letter last year on the subject to the companies in the Russell 3000, and was not encouraged by the responses. Most large-cap companies have it, and it seems to be inevitable that smaller companies will be pressured to adopt it as well. Frankly, I don’t think it’s worth fighting over, and early adoption might give a company a leg up on other governance challenges. Continue Reading News from the institutional investor front