Summary
Fidelity National Information Services, Inc. (FIS) filed an 8-K on January 28, 2011, reporting a significant change in its corporate governance. Effective January 26, 2011, the company's Board of Directors approved amendments to its Bylaws to implement a majority voting standard for the election of directors in non-contested elections. This change shifts the requirement from a plurality of votes to a majority of votes cast for a director nominee to be elected. This move towards majority voting is a key governance reform that provides shareholders with a more direct say in director elections. In conjunction with this change, FIS has established a Majority Voting Policy. This policy mandates that incumbent directors must submit an irrevocable resignation if they do not receive a majority of the votes cast in an uncontested election. The Board of Directors will then review and decide whether to accept this resignation, offering a mechanism to hold directors accountable to shareholders.
Key Highlights
- 1FIS adopted a majority voting standard for director elections in non-contested situations.
- 2Under the new policy, director nominees must receive more 'for' votes than 'against' votes to be elected.
- 3The change from plurality to majority voting gives shareholders more power in electing board members.
- 4An incumbent director failing to achieve a majority vote in an uncontested election must submit an irrevocable resignation.
- 5The Board of Directors will review and decide on accepting the resignation of a director who fails to receive majority support.
- 6This governance change enhances director accountability to shareholders.
- 7The amendment affects Article Two of the company's Amended and Restated Bylaws.