BRISTOL-MYERS SQUIBB COMPANY | Executive retention of significant stock at Bristol-Myers Squibb

Status
38.71% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
BMY
Lead filer
Individual
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Remuneration or pay
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Health Care
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders ask the Board of Directors to adopt a policy requiring the 5 named executive officers (NEOs) to retain a significant percentage of stock acquired through equity pay programs until reaching normal retirement age and to report to shareholders regarding the policy in our Company's next annual meeting proxy. For the purpose of this policy, normal retirement age would be an age of at least 60 and be determined by our executive pay committee. Shareholders recommend a share retention percentage requirement of 25% of net after-tax shares.
Supporting statement
SUPPORTING STATEMENT: This single unified policy shall prohibit hedging transactions for shares subject to this policy which are not sales but reduce the risk of loss to the executive. Otherwise our directors might be able to avoid the impact of this proposal. This policy shall supplement any other share ownership requirements that have been established for senior executives, and should be implemented without violating current company contractual obligations or the terms of any current pay or benefit plan. The Board is encouraged to obtain waivers of any current pay or benefit plan for senior executives that might delay implementation of this proposal.
Requiring senior executives to hold a significant portion of stock obtained through executive pay plans would focus our executives on our company’s long-term success. A Conference Board Task Force report stated that hold-to-retirement requirements give executives "an ever
-growing incentive to focus on long-term stock price performance."
This proposal topic is all the more important at Bristol-Myers due to the recent poor stock performance. Bristol-Myers stock has fallen from $81 to $49 in the year following November 2022. Additionally there is commentary that Bristol-Myers does not have a game plan for future growth.
Sales from BMY's top three drugs — Revlimid, Optivo and Eliquis are dwindling as they gradually go off patent. And BMY has no current item or promising pipeline replacements. There is also commentary that BMY is unwieldy, and needs to sell underperforming divisions.
A more rigorous NEO stock retention plan could ultimately improve shareholder value significant for years into the future.
Please vote yes:

Filed by John Chevedden.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.