OGE ENERGY CORP. | Simple majority vote

Status
59.30% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
OGE
Lead filer
Individual
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Shareholder rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
United States
Resolved clause
RESOLVED, Shareholders request that our board take the necessary steps so that each voting requirement in our charter and bylaws (that is explicit or implicit due to default to state law) that calls for an 80% vote to be replaced by a requirement for a 67% vote for such proposals
Supporting statement
John Chevedden, beneficial owner of no fewer than 100 shares of OGE Energy Corp. since September 1, 2018, has given notice that he intends to present a proposal for action at the Annual Meeting.
One of the main purposes of this proposal is to give shareholders a choice of a transition from 80% voting requirements to 67% voting requirements since management is expected to have a 2022 proposal calling for a transition from an 80% vote requirement to a 50.1% vote requirement. The OGE management proposal is expect to fail again (4 failures since 2013) and thus it is important to have a proposal that has a better chance of approval than the management proposal.
Shareholder proposals similar to this proposal received from 84% to 97% support at OGE from 2015 to 2021.
Shareholders are willing to pay a premium for shares of companies that have excellent corporate governance. Supermajority voting requirements like 80% have been found to be one of 6 entrenching mechanisms that are negatively related to company performance according to "What Matters in Corporate Governance" by Lucien Bebchuk, Alma Cohen and Allen Ferrell of the Harvard Law School.
Supermajority requirements are used to block proposals supported by most shareholders but opposed by a status quo management

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