Upcoming AGMs in this week’s Vote Roundup
The AGMs of note from late March to early April, including Hewlett Packard Enterprise and McCormick.
Coming up on our AGM calendar…
Lobbying transparency at Hewlett Packard
Hewlett Packard Enterprise’s (HPE) AGM (April 5th) has one shareholder proposal on its agenda which will have shareholders voting on the company’s lobbying activity. Specifically, the proposal asks HPE to report on its spending on all forms of lobbying, including related policies and processes around the activity. HPE recommends votes against the proposal, defending its existing lobbying disclosures as “appropriately transparent”.
The appearance of this resolution on HPE’s AGM agenda follows the trend identified by law firm Sullivan & Cromwell that political lobbying resolutions typically target well-known brands, as well as companies in sectors “that attract public attention”, including technology.
Special-meeting rights at Synopsys Inc
Over at electronics company Synopsys Inc, a shareholder proposal is asking the board to loosen the requirements for calling special meetings. However, Synopsys believes that its current requirements — shareholders having held a combined 20% of shares for at least one year — remain the best option.
This resolution is one to watch, as when the same proponent submitted a similar proposal at Synopsys’ 2021 AGM, the resolution received 44.1% shareholder support.
The company’s AGM is scheduled for April 12th.
Business as usual for McCormick & Company
Financial year 2022 seems to have been a cold spell for American spice company McCormick, as its net sales saw a marginal growth of 0.5% (compared to 12.8% in the previous year), and its gross profit fell by 8.8%. However, CEO Lawrence Kurzius views it “as a temporary setback in [the company’s] long-term performance”.
The Maryland-based company is set to hold its AGM on March 29th, with Chair and CEO Lawrence Kurzius set to reprise both of these roles. Besides that, shareholders will also vote on the company’s executive pay report as well as a say on frequency vote (a binding resolution that determines the frequency of a company’s say on pay votes).
AGM Season rising in the East
A large swathe of Korean listed companies are set to hold their AGMs at the end of March, as Korea’s AGM (proxy) season draws nearer. According to ISS, key highlights of the AGM season include an expected increase in board gender diversity, and improvements in corporate governance practices. Glass Lewis has also raised director nominees’ independence as a concern at Korean companies, in its 2022 Korea Proxy Season Briefing.
Based on these insights, asset owners with investments in Korean companies could benefit from directing their stewardship focus towards Board elections.
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