Though the proxy results are highly critical, directors are holding onto their seats due to lack of competition, according to the Wall Street Journal. So far in 2009, 93 directors have received less than 50 percent approval at their companies’ annual meetings, and yet all of these directors retained their seat at the board due to the absence of a competing director. The 93 board members (at 50 companies) is more than twice as many as advisory firm RiskMetrics has seen since beginning its survey in 2003.
Directors Keeping Jobs in Spite of Shareholder Nonsupport
A record 93 directors received less than 50 percent shareholder support this year.
September 28, 2009