General Electric (GE) held its annual shareholder meeting on April 28th. It comes as no surprise that the same 16 directors up for reelection remain firmly in place. However, it should raise some eyebrows, since the number of shares voted against certain board members (most notably Messrs. Lafley and Penske) fell sharply compared to last year. Yet, in a fantasy land of GE proxy voting, it might not matter so much if shareholder (activist) Evelyn Davis, the “queen of the corporate jungle,” had garnered more votes for her perennial proposal for cumulative voting, which unfortunately and curiously saw a decline in support versus years prior. Back to reality, regardless of how many additional future votes there might be for cumulative voting, the board will likely not only continue to regard it as a closed matter since it was rejected, but it will also fail to acknowledge the importance of the proposal to a not insignificant number of shareholders. Ironically, even with a majority vote in favor of the proposal, the board is not required by law to do anything at all. continue reading…
