Argo AGM 2019: shareholders back board but question executive reward

Shareholders voted “overwhelmingly in favour” of directors put forward by re/insurance firm Argo at its AGM, crushing a bid to change direction at the top of the company by activist investor Voce Capital Management.

Argo shareholders voted to elect all five of the company’s Class III directors to the board.

The re/insurer said that even before Voce withdrew its board proposals days before the 24 May AGM, the investor’s nominees had “received limited shareholder support”.

As early as 20 May, Argo said Sedgwick Browne, a director “targeted for removal by Voce” had gained support from shareholders holding over 80 percent of the submitted proxies.

A similarly large proportion, almost 80 percent of the submitted proxies, had voted against the removal of Argo chairman Gary Woods, and more than 80 percent of the submitted proxies had voted against the removal of the other directors named by Voce.

The company said that based on preliminary votes, the non-binding advisory resolution on executive compensation received 50.53 percent of the votes in favor, with 49.47 percent against.

Woods said the board and management “value the conversations we have had with our shareholders in recent months regarding our strategy, governance, and plans for continuing to create shareholder value”. He added that the company plans “to maintain an active and productive dialogue with our shareholders”.

In response to the narrowly won vote on compensation, he said: “We will work with our shareholders to fully understand the concerns that influenced the vote regarding the compensation of our executive officers and are committed to taking the necessary actions to address those concerns.

“Our board will carefully consider these results, as well as future shareholder input, in determining executive compensation going forward. We thank our shareholders for their continued feedback and support.”

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