This is first time I’ve attended a Council of Institutional Investors (CII) semi-annual conference. My report from first day events can be found at CII Fall 2014 Conference: Part 1. See also, Part 2 and Part 3. There are no fact checkers or even grammar editors here at corpgov.net, so read with that warning. I’ll try to attend CII more often. It was a great event… very informative, lots of interesting people trying to do their fiduciary duty and a bit more. Continue Reading →
Tag Archives | diversity
We last explored the topic of gender diversity on boards, in particular the underrepresentation of women on them, late in 2012, but much has happened globally on the subject since then. More companies have adopted regulation on the issue that range from “comply-or-explain” rules to quotas for the percentage of women on boards.
A 2014 Grant Thornton report, Women in Business: From Classroom to Boardroom, finds more leaders warming to a quota system, with 45% of international business leaders supporting quotas — up from 37% just a year ago.
Below is a brief summary of some of the most recent developments concerning women on boards. Continue Reading →
Premiere Global Services, $PGI, is one of the stocks in my portfolio. Their annual meeting is June 17, 2014. ProxyDemocracy.org had collected the votes of three funds when I checked and voted on 6/11/2014. I voted with the board’s recommendations 40% of the time, thus assigned a proxy score of 40. View Proxy Statement. Read Warnings below. What follows are my recommendations on how to vote the PGI proxy in order to enhance PGI’s corporate governance and long-term value. Continue Reading →
American Express Company $AXP is one of the stocks in my portfolio. Their annual meeting is on 5/12/2014. ProxyDemocracy.org had collected the votes of three funds when I checked and voted on 5/4/2014. I voted with management 47% of the time. View AXP’s Proxy Statement, which is user friendly. My recommendations on how to vote the AXP proxy follows.
Warning: Be sure to vote each item on the proxy. Any items left blank are voted in favor of management’s recommendations. (See Broken Windows & Proxy Vote Rigging – Both Invite More Serious Crime) I generally vote against pay packages where NEOs were paid above median in the previous year but make exceptions if warranted. Continue Reading →
The March/April edition of The Corporate Board contains several excellent articles. I e-mailed a couple of quotes from their ‘Spoken & Written’ section to a CEO who needs a real board, instead of a rubber stamp. Continue Reading →
“Investing In Women – Increasing Opportunities For Funding Women” Presented by WITI (Women In Technology International) and NanoTecNexus. Presented at WITI San Diego Network meeting. Continue Reading →
- 60% of recent university graduates have been women, 50% of those graduating with advanced degrees in law and medicine, 1/3 of those with MBAs.
- There will be labor and skill shortages in all developed countries over the next two decades as baby-boomers retire.
- Women make 89% of the consumer purchasing decisions.
- Companies with more women in top management positions are more successful.
- Women are less greedy, less likely to engage in theft, fraud and corruption, protecting their organizations from failure and poor reputation.
- Organizations retaining and advancing qualified women have an advantage in the war for talent. Continue Reading →
Many of us free ride on actions taken by active, long-term shareholders. These unsung heroes goad managers and boards to reach better decisions, make available desirable employment opportunities and, overall, push them to act like good corporate citizens. These active investors accomplish these things by talking to companies, preparing proxy proposals for all shareholders to consider, and offering recommendations on director elections and company-sponsored proxy measures.
Ralph Ward digs past the standard bullshit in his 2014 Boardroom Insider. Always plenty to chew on in a few short pages. Here’s a tidbit, which I hope will leave you wanting more, which includes more tips than you’ll find in pages and pages of other publications aimed at directors. Continue Reading →
The International Corporate Governance Network sent comments to the Ontario Securities Commission (OSC) and the Australian Stock Exchange (ASX). I think they warrant widespread reading and adoption. What follows are highlights from the OSC letter.
Gender diversity is a competitiveness issue for a company as a whole and a critical dimension of governance, both in the board’s oversight of the enterprise and in the board’s own composition and talent management. Increasing the representation of skilled and competent women on corporate boards will strengthen the corporate governance culture and ultimately contribute to value for all stakeholders. Continue Reading →
Mainstream microeconomics has emphasized the search for perfectly competitive markets within a framework of equilibria in a quest to maximize economic efficiency. Tisdell argues that intense competition can reduce economic performance. He concentrates on market adjustments and the evolution of economic systems where the role of diversity, product niches, cooperation between firms and comparisons with intra-species competition and inter-species competition. That basic premise rings true to me, since our environment is in constant flux.
His analysis certainly appeals to my sensibilities as a student of the sociology of knowledge, since he reminds us that, unlike other species, humans can “take deliberate actions to prepare themselves for future predicted events, or in come cases they can alter the course of these events to yield outcomes which they prefer.” Evolution is no longer a “blind” process, but can be consciously influenced. Continue Reading →
After finding some “off-beat” proposals made at Fortune 250 firms and posted to ProxyMonitor.org, Laura J. Finn thinks the following might be Five Coming Trends in Shareholder Proposals (Corporate Board Member, July 11, 2013). I provide a brief evaluation of each and add a couple of my own. Continue Reading →
Time to Move Down the Food Chain With Proxy Proposals
How does director voting look so far this year? Eighty percent of directors up for election received over 90% shareholder support. And nine of ten received at least 80% support. Directors of large-cap companies had the highest rate of support, averaging 95% approval. Small cap and Micro-cap directors had the lowest affirmative rates, with 76% voting “for.” Only a very small number of individual directors (less than 2%) failed to receive majority shareholder support. (From ProxyPulse, a Broadridge PwC Initiative. Much more at the site.) Continue Reading →
Facebook Inc ($FB) is one of the stocks in my portfolio. Their annual meeting is coming up on 6/11/2013. ProxyDemocracy.org had collected no votes when I checked on 6/5/2013. I voted with management 9% of the time. View Proxy Statement. Senator Warren recently called on the exchanges to block companies with unequal voting structures from listing. Too bad that didn’t happen years ago.
The Home Depot, Inc. (HD) is one of the stocks in my portfolio. Their annual meeting is coming up on 5/23/2013. ProxyDemocracy.org had collected the votes of three funds when I checked on 5/16/2013. I voted with management 81% of the time. View Proxy Statement. Warning: Be sure to vote each item on the proxy. Any items left blank are voted in favor of management’s recommendations. (See Broken Windows & Proxy Vote Rigging – Both Invite More Serious Crime) Continue Reading →
The provision would eliminate Internal Revenue Code section 404(k), an incentive for ESOP creation and operation that permits a C corporation to deduct the value of dividends paid on ESOP stock passed through to employees in cash, deductions used to pay the ESOP acquisition loan, or when the employee reinvests in more company stock in his/her ESOP account balance. Continue Reading →