A survey conducted by Proxy Governance has found that opposition to director nominees increased in 2009, demonstrating a rise in shareholder dissatisfaction in the job performance of board members. The data collected in the last year shows that at least twenty percent of shareowners voted against or withheld votes for 9.8 percent of unopposed director nominees, an increase from the 5.5 percent of such nominees recorded last year. The figures suggest that “compensation concerns…appear to have been a primary driver behind the increasing number of shares voted in opposition in director elections,” said Scott Fenn of Proxy Governance. Majority votes against nominees tripled from 0.2 percent in 2008 to 0.6 percent in the last year. 84 directors at 48 companies failed to reach majority shareholder support.
New Director Opposition Increased in 2009
A study shows that more directors nominees last year saw opposition or withheld votes.