During this proxy season, the American Corporate Governance Institute (the “ACGI”), an organization with which we are affiliated, assisted two institutional investors in the submission of shareholder declassification proposals. This post reports on the success that these shareholder declassification proposals had in contributing to board declassification in 14 S&P 500 companies. The declassification of the boards of these companies would produce a 10% reduction in the number of S&P 500 companies with a classified board (currently standing at 139).
The ACGI assisted the Florida State Board of Administration (the “Florida SBA”) in the submission of shareholder declassification proposals for a vote at the 2011 annual meeting of a number of companies. The Florida SBA and the ACGI subsequently negotiated and reached agreements with seven companies, pursuant to which each company will bring a management proposal to declassify its board of directors.
The ACGI also assisted the Nathan Cummings Foundation (the “Foundation”) in the submission of shareholder declassification proposals to a number of companies. The Foundation and the ACGI subsequently negotiated and reached agreements with six companies, pursuant to which each company will bring a management proposal to declassify its board of directors. In addition, following the submission of one of the Foundation’s proposals (to Watson Pharmaceuticals, Inc.), the company announced a plan to bring a declassification proposal to a vote at its 2011 annual meeting.