United Rentals, Inc. | Directors Who Fail To Obtain A Majority Vote at United Rentals, Inc.

Status
Filed
Previous AGM date
Resolution details
Lead filer
John Chevedden
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Shareholder rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company HQ country
United States
Resolved clause
RESOLVED : Shareholders request that the Board of Directors take the necessary steps to ensure that directors who fail to obtain a majority vote in a future uncontested shall leave the board as soon as possible but in no case shall such directors serve more than 9-months on the Board after such failed election.
Supporting statement
A vote of rejection by United Rentals (URI) shareholders needs to be respected. URI shareholders often only vote on 3 Company items a year. The least that URI can do is to respect all shareholder votes. If URI accepts shareholder approval of its executive pay then URI should be prepared to accept shareholder rejection of a director. 9-months is adequate time for URI to find a highly qualified replacement director. This proposal will give URI directors more of an incentive to perform. If URI underperforms in the future, URI shareholders may believe that board refreshment is a way to address underperformance. URI shareholder efforts at board refreshment could be thwarted if URI can ignore URI shareholders when shareholders reject a director.

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