Summary
United Parcel Service Inc. (UPS) filed an 8-K on November 7, 2019, primarily detailing a change in their corporate governance policy regarding executive compensation votes. The Board of Directors has amended the Corporate Governance Guidelines to hold "say on pay" advisory votes annually, rather than triennially. This means shareholders will now have a yearly opportunity to vote on the approval of executive compensation.
Key Highlights
- 1UPS Board of Directors amended the Corporate Governance Guidelines.
- 2The frequency of 'say on pay' shareholder advisory votes has been changed.
- 3Shareholder votes on executive compensation will now occur annually, moving from a triennial (every three years) basis.
- 4The next 'say on pay' vote is scheduled for the 2020 Annual Meeting of Shareowners.
- 5A vote on the frequency of future 'say on pay' votes will be held no later than the 2023 Annual Meeting of Shareowners.
Frequently Asked Questions
The main purpose of this filing is to inform investors that UPS's Board of Directors has changed its policy on the frequency of advisory shareholder votes on executive compensation, commonly known as 'say on pay' votes. These votes will now be held annually instead of every three years.
This change provides shareholders with a more frequent opportunity to voice their opinions on the company's executive compensation practices. Instead of voting once every three years, they can now do so annually, starting at the 2020 Annual Meeting of Shareowners.
The next 'say on pay' vote will take place at UPS's 2020 Annual Meeting of Shareowners.
Yes, a vote to determine the future frequency of these 'say on pay' votes will be held no later than the Company's 2023 Annual Meeting of Shareowners.