Release Date: Apr 24, 2002
NEW YORK, NY The Amalgamated Bank LongView Collective Investment Fund shareholder resolution on board declassification received a majority of votes cast (54.4%) at this week's Annual Meeting of Shareholders of VF Corporation in Greensboro, North Carolina.
Eliminating the classified (or "staggered") board at VF would mean holding annual elections for all board members. Annual elections can improve board sensitivity to important shareholder issues. In particular, implementing annual elections for all directors can speed diversification of a company's board and introduce new perspectives.
Lately, shareholders have expressed frustration with classified boards and a desire to change the status quo. In 2001 shareholders voted on declassification at 40 companies, and these proposals received an average of 53.2% of the "yes-and-no" vote. Companies where shareholders urged this reform include Airborne Freight Baker Hughes Federated Department Stores Goodyear Tire & Rubber and Baxter International. A bylaw proposal to eliminate the classified board at Kmart this year received 73% of the "yes" votes.
Melissa Moye, Chief Economist at Amalgamated, said, "We are pleased with the vote and hope that the VF board will take prompt action to enact the wish of the shareholders."
The company stated in its response to the shareholder resolution, "approval of this proposal would not automatically eliminate the classified Board, as this proposal is only a recommendation to the Board." So, while shareholders are urging the board to amend current policy, it is ultimately in the hands of the VF board to respond to shareholders and enact the change.
