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Voted Shareholder Proposals: Framework for Boards of Directors

By Randi Morrison posted 04-24-2023 09:24 PM

  

As Shareholder Proposals Proliferate, Boards Might Consider this Framework to Evaluate Voting Results” from Mayer Brown suggests a sound framework for boards to evaluate the disposition of voted shareholder proposals that includes delving beneath the surface of the absolute percentage of shareholder support to consider the types and numbers of shareholders “for” and “against”; proposal type/topic as relates to the company’s business; middle ground solutions that neither fully reject or accept a proposal’s “ask”; and the proposals’ alignment with the company’s overall strategy and, relatedly, whether implementation is in the best interests of the corporation.

Access additional resources on our Shareholder Proposals and Director / Officer Duties & Liabilities pages.

                                    This post first appeared in the weekly Society Alert!

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