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GARMIN LTD 8-K Report, Shareholder Vote Results (Jun 7, 2021)

Filed June 7, 2021For Securities:GRMN

Summary

This 8-K filing details the outcomes of Garmin Ltd.'s annual general meeting of shareholders held on June 4, 2021. The primary focus for investors is the overwhelming approval of key corporate actions, including the 2020 Annual Report and financial statements, the appropriation of earnings, and the payment of a significant cash dividend. Shareholders also re-elected all proposed directors and compensation committee members, approved executive and board compensation frameworks, and ratified the appointment of auditors, indicating strong shareholder confidence in the company's management and governance. The most impactful item for shareholders is the approval of a cash dividend totaling $2.68 per outstanding share, to be paid out of the company's capital contribution reserve in four equal installments. The first installment of $0.67 is scheduled for June 30, 2021, with subsequent payments planned throughout late 2021 and early 2022. This dividend distribution underscores Garmin's commitment to returning capital to shareholders and reflects a positive outlook on the company's financial position.

Key Highlights

  • 1Shareholders overwhelmingly approved the 2020 Annual Report and consolidated financial statements.
  • 2Approval granted for the appropriation of available earnings.
  • 3A cash dividend of $2.68 per outstanding share was approved, to be paid in four equal installments.
  • 4All nominated directors, including Executive Chairman Min H. Kao, were re-elected to serve until the 2022 annual general meeting.
  • 5The appointment of Ernst & Young LLP as the Independent Registered Public Accounting Firm for FY2021 was ratified.
  • 6Shareholders approved advisory and binding votes regarding the compensation of Named Executive Officers and the aggregate compensation for Executive Management and the Board of Directors for FY2022.
  • 7The first installment of the approved cash dividend ($0.67 per share) is set for June 30, 2021.

Frequently Asked Questions

Shareholders approved a total cash dividend of $2.68 per outstanding share. This dividend will be paid out of Garmin's reserve from capital contribution in four equal installments.

The dividend will be paid in four equal installments. The first installment of $0.67 per share was payable on June 30, 2021. The Board currently expects the remaining installments to be paid on September 30, 2021 ($0.67), December 31, 2021 ($0.67), and March 31, 2022 ($0.67), with corresponding record dates set prior to each payment.

While most proposals passed with overwhelming support, there were notable 'Against' votes on the re-election of some directors, particularly Jonathan C. Burrell (24,205,789 votes against) and Charles W. Peffer (18,875,888 votes against). The advisory vote on executive officer compensation also saw a significant number of 'Against' votes (6,855,146).

The shareholders ratified the appointment of Ernst & Young LLP as Garmin's Independent Registered Public Accounting Firm for the 2021 fiscal year and re-elected Ernst & Young Ltd. as Garmin's statutory auditor for another one-year term.