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After reading Deere's proxy material and skimming the annual report last week, I was wondering just how diligent are you about completing the proxy form and voting your shares.
If you do vote, do you look everything over and vote your conscience or do you just vote the recommendation management gives you?
I'll add my comments later.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
My practice is to vote the Board's recommendation when times are good, and vote against the rec.s when there are struggles. Example: prior to the '08 crash in bank stocks, I had a boatload of a regional bank. When they were riding the crash curve way, way down, the Board gave $1,000,000 to Auburn University of all things. From that point on to when I liquidated at a huge, painful loss, I voted " no" on the Board's rec.s. did it matter? Of course not cause I was not Warren Buffet or the Koch brothers or similar big dogs. But I slept better.
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01-19-2014, 11:32 PM
(This post was last modified: 01-19-2014, 11:33 PM by Kerim.)
Not proud to say it, but I do not vote my shares. Between job and family, I'm amazed I find the time to research and follow the stocks generally. Trying to stay informed about the various shareholder voting issues for twenty-some companies on top of that just isn't going to happen for me. And rather than "guess" with my vote, I abstain.
By the way -- welcome to the forum CritMass!
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I've tried to vote every proxy I get for years just like political elections.
I look for "bad actors" on the board and vote against them. Someone like Bob Nardelli of $200M+ salary fame from Home Depot or Dennis Koslowski of Tyco I don't want on my board. If I think the top executives are using the company as their own piggy bank or the company is not performing well for while, I also vote against the compensation committee. My own belief is you can't give a CEO a big % base salary raise when the company isn't doing so well.
I vote for shareholder proposals that support my own core principles. For example, women equality or recycle/conservation efforts but vote against those of special interest groups that are trying to change the company's reason for existence. Anti-smoking groups trying to tell Altria to get out of the cigarette business are just crazy.
I at least skim over everything to get a feel how the board and executives see the company.
I also vote against every non-binding "Say on Pay" proposal for every executive that gets over $1M in base compensation.
It usually doesn't make a difference but sometimes the board is more judicious when they see votes not as they expected, even those not in the majority.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
Kerim, thank you for the warm welcome.
