Release Date: May 6, 2004
New York, NYAt today's annual meeting, Peabody Energy, Inc. (NYSE: BTU) shareholders have cast 20.6% of their votes in favor of a resolution on board independence. The proposal, filed by Amalgamated Bank's LongView Collective Investment Funds, urges the board to adopt a policy of nominating independent directors who, if elected by the shareholders, would constitute two-thirds of the board.
The resolution proposes a standard of independence recommended by the Council of Institutional Investors (CII), an organization of pension funds representing over $3 trillion in assets.
"We believe that a board with a substantial and clear majority of independent directors is an essential component of an effective corporate governance system," said Chief Economist Melissa Moye of Amalgamated Bank's Trust & Investment Group. "In our view, the Peabody board should reduce the potential for conflicts of interest due to directors' other ties and responsibilities."
Currently, the 12-member Peabody board includes six members considered by the Investor Responsibility Research Center to be affiliated with company management, including one employee, Chairman and CEO Irl F. Engelhardt, and at least three directors associated with Lehman Brothers. In recent years, Lehman Brothers provided significant banking services to Peabody, including acting as lead underwriter on its initial public offering.
The LongView Funds, which currently hold over 13,000 shares of Peabody common stock, recommend that this policy be phased in so as not to affect the unexpired terms of directors elected at or prior to the 2004 annual meeting.
Founded in 1923, Amalgamated Bank invests workers' retirement savings through its LongView Funds. With $8 billion in assets under management, LongView actively votes its proxies and sponsors shareholder initiatives for corporate reform. Amalgamated Bank is available online at www.amalgamatedonline.com
