Summary
This 8-K filing from Sempra Energy (SRE) reports the results of its 2020 Annual Shareholders Meeting held on May 5, 2020. The primary focus for investors is the outcome of shareholder voting on key corporate governance matters. Notably, all 13 director nominees were elected, with overwhelming support for most nominees, although one director, Cynthia J. Warner, received a lower affirmative vote (70.22%). The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2020 was ratified with strong approval. Additionally, shareholders approved, on an advisory basis, the company's executive compensation. Of significant interest to governance-focused investors, a shareholder proposal advocating for an independent board chairman was rejected by a majority of shareholders (61.72% voted against). This indicates that shareholders, in aggregate, did not support the move towards separating the CEO and Chairman roles at this time. The filing also notes the retirement of two directors, William C. Rusnack and Lynn Schenk, in accordance with the company's director retirement policy.
Key Highlights
- 1All 13 director nominees were elected by shareholders, with most receiving very high approval percentages.
- 2Cynthia J. Warner received a lower percentage of 'For' votes (70.22%) compared to other director nominees, suggesting some shareholder concern.
- 3Deloitte & Touche LLP was ratified as Sempra's independent auditor for 2020 with strong shareholder support (96.58% 'For').
- 4Shareholders approved the company's executive compensation on an advisory basis with a high affirmative vote (97.22% 'For').
- 5A shareholder proposal to require an independent board chairman was rejected, with 61.72% of votes cast against it.
- 6William C. Rusnack and Lynn Schenk retired as directors as per the company's retirement policy.