A large number of shareholders seem to think nominated directors should receive a majority of votes cast rather than a plurality in order to serve on the company’s board, and companies like Citigroup, Lowe’s and Dillard’s seem to be leaving the door open to consideration of a majority vote policy.
Two weeks ago, 38 percent of shareholders voting supported a resolution at Caterpillar’s annual meeting calling for directors to be elected by majority vote, while 48 percent of those voting at Gannett’s gathering supported a similar measure. And last week, a Citigroup resolution—which the world’s largest bank unsuccessfully tried to omit from its proxy—received 41 percent approval.
