Egan-Jones 2017 Guideline Changes Implemented
Haverford, PA -- Egan Jones Proxy Services ("EJPS") today announced the implementation of changes to its proxy voting guidelines for the 2017 Proxy Season.
Key updates for this year’s upcoming proxy season include:
- Over-boarding – Egan-Jones will expand its strictest over-boarding threshold to Chairmen who are not CEOs in addition to the current inclusion of CEOs. This requirement means that both Board Chairmen and CEOs will receive a WITHHOLD recommendation if they hold more than one outside public directorship.
- Board Member Tenure and Independence - We have decided to take a more conservative approach to the independence of Board members with a long tenure at a firm. Recognizing that at a certain point a long tenured Board member can no longer be considered fully “independent” we will classify Directors with ten or more years on the Board as “affiliated outside director.” Note that since we only recommend support of directors who are fully independent for membership in key Board committees and any non-independent director on such a committee will receive a recommendation of WITHHOLD.
- Auditor Ratification – Egan-Jones will apply stricter requirements to all Guidelines including a requirement for auditor rotation and rate firms based upon the relative size of the auditor payments as compared to other firms and the disciplinary history of the auditor chosen. A poor rating result will generally result in Egan-Jones not supporting ratification of that auditor.
See the full updated guidelines at: http://ejproxy.com/methodologies/
Comments or questions about the Egan-Jones Proxy Guideline should be directed to Ms. Magda Pacheco, Manager, Client Relations at Egan-Jones Proxy Services (email@example.com).
Egan-Jones Proxy Services
61 Station Road
Haverford, PA 19041
Egan-Jones Proxy Services ("EJP") is a leading provider of independent proxy research, voting recommendations and voting services to a variety of institutional investors. EJP assists institutional fiduciaries in determining voting directions as well as assisting in the administrative submission of proxy voting, and provides research, recommendations, voting, and voting record retention services on various shareholder proxy voting matters. EJP was established in 2002 by the Egan-Jones Ratings Co., Inc. ("EJR"), a nationally recognized statistical rating organization ("NRSRO") as designated by the U.S. Securities and Exchange Commission. EJR provides credit rating services for primarily institutional clients. EJP is a related division of EJR, and is not a subsidiary or stand-alone corporate entity. EJP and EJR have physical and electronic safeguards in place to prevent conflicts of interest and the sharing of client data.