(The International Brotherhood of Teamsters issued the following news release on March 13.)
WASHINGTON — Abandoning its two-year opposition to Teamster proposals demanding a majority vote standard in director elections, FedEx’s board of directors today amended the company’s bylaws to adopt a majority-voting standard in uncontested director elections and a resignation requirement for directors who fail to receive the required majority vote.
Over the past two years, Teamster proposals for a majority-vote standard received significant support from FedEx shareholders, gaining more than 33 percent of the shareholder vote in 2005 and surpassing 44 percent in 2006.
In the current proxy season, the Teamsters submitted resolutions calling for majority-vote standards at Burlington Northern Santa Fe Corp., PepsiAmericas, International Paper Co., CSX Corp., Allied Waste Industries and YRCW. Thus far, Burlington Northern Santa Fe Corp., PepsiAmericas and YRCW have adopted a majority-vote standard.
“This is a triumph for FedEx shareholders who gain a greater voice in the boardroom by having the ability to have an up or down vote on directors,” said C. Thomas Keegel, Teamsters General Secretary -Treasurer. “This is the second time FedEx has backed down from its opposition to our common-sense shareholder proposals that increase the board’s accountability to shareholders. It is our firm belief that better corporate governance structures like the ones proposed enhance long-term shareholder value.”
In 2004, FedEx adopted a Teamster proposal that it had originally opposed to declassify its board. The Teamster proposal for board declassification had received 66 percent of the shareholder vote in 2003.
The International Brotherhood of Teamsters’ watchdog web site for FedEx is www.FedExWatch.com.