Survey on Majority Voting for the Election of Directors

Cite this Article
Bill Sjostrom, Survey on Majority Voting for the Election of Directors, Truth on the Market (March 02, 2006),

As I’ve blogged before (here), a hot issue among shareholder activists this proxy season is majority voting for the election of directors. As mentioned in my previous post, a number of companies have taken a pre-emptive strike approach and voluntarily adopted modified plurality or majority voting standards in an effort to stave off the activists.

Chicago law firm Neal Gerber Eisenber LLP has prepared a survey that lists details about the modified plurality or majority voting standards adopted by 87 companies. Click here for the executive summary and here for the survey.

Related posts:
Sjostrom, Majority Voting for Directors
Sjostrom, Voluntary Adoption of Majority Voting

Update: The new ISS Corporate Governance blog has a post today (click here) speculating whether majority vote proposals on the agenda at several corporations via Rule 14a-8 will receive shareholder approval. The post also notes that the practical difference I identify in my comment below between a real majority vote standard and the Pfizer approach may not be a practical difference afterall–it is standard practice at many companies “to appoint new directors to office before the annual meeting, which would give those new nominees incumbent status.”