Summary
Equifax Inc. (EFX) announced significant proposed changes to its corporate governance structure, aimed at enhancing shareholder rights and accountability. The Board of Directors has unanimously agreed to submit proposals at the 2009 Annual Meeting of Shareholders to declassify the board and move to an annual election of all directors. This transition aims to have all directors elected annually for one-year terms by the 2012 Annual Meeting, moving away from the current staggered three-year terms. Furthermore, the company intends to adopt a majority voting standard for director elections in uncontested situations. This policy, if approved by shareholders, would require directors to receive more 'for' votes than 'against' votes to be elected. This move reflects a growing trend in corporate governance towards greater responsiveness to shareholder sentiment.
Key Highlights
- 1Equifax to propose declassifying its Board of Directors at the 2009 Annual Meeting.
- 2Proposal to move to annual election of all directors, phasing out staggered terms by 2012.
- 3Adoption of a majority voting standard for uncontested director elections.
- 4Directors will be elected for one-year terms if proposals are approved.
- 5The Board has unanimously agreed to support these management proposals.
- 6These changes are designed to increase board accountability to shareholders.