NEST Votes Against Management Report ... Henry Schein, Inc. Proposal Number Proposal Proponent Mgmt...

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Transcript of NEST Votes Against Management Report ... Henry Schein, Inc. Proposal Number Proposal Proponent Mgmt...

  • NEST Votes Against Management Report 01/04/2013 to 30/06/2013

  • Disclaimer: The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. The report reflects voting instructions given, not votes cast and the information has been provided by an external supplier. F&C Group Companies may from time to time deal in investments that may be mentioned herein on behalf of their clients. Issued and approved in the UK by F&C Management Limited Exchange House Primrose Street London EC2A 2NY United Kingdom. Authorised and regulated in the UK by the Financial Services Authority (FSA). F&C, F&C Monogram, FANDC, FandC and fandc are all registered trade marks of F&C Management Limited F&C Management Limited Exchange House Primrose Street London EC2A 2NY United Kingdom Tel: +44 (0) 20 7628 8000 www.fandc.com

  • Votes Against Management Report Date range covered: 04/01/2013 to 06/30/2013

    NEST Votes Against Management Report

    Amazon.com, Inc.

    Meeting Date: 23-May-13 Country: USA

    Meeting Type: Annual Ticker: AMZN

    ISIN: US0231351067 SEDOL: 2000019

    Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    Mgmt Against ForElect Director Thomas O. Ryder 1h

    Voter Rationale: Directors whose close family members are employed at the company are not sufficiently independent to serve on key board committees and should be considered affiliated directors.

    SH For AgainstReport on Political Contributions 3

    Voter Rationale: Comprehensive, aggregate disclosure on political spending is best practice. Disclosure should include all state and local donations including support for 527 organizations and ballot initiatives. In addition, the company should identify key relationships with trade associations that engage in lobbying on the corporation's behalf, as well as describe its policies and processes for giving. We ask that the board provide ultimate oversight for political donations.

    Crown Castle International Corp.

    Meeting Date: 23-May-13 Country: USA

    Meeting Type: Annual Ticker: CCI

    ISIN: US2282271046 SEDOL: 2285991

    Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    3 Approve Omnibus Stock Plan Mgmt For Against

    Voter Rationale: The plan improperly allows for accelerated vesting for an overly broad range of corporate restructuring scenarios and such provisions fail to reward performance. Rather, equity should be rolled forward into any successor company, or vest in a time-apportioned fashion only to the extent that performance conditions are met or if an executive loses his job.

    Page 1 of 21

  • Votes Against Management Report Date range covered: 04/01/2013 to 06/30/2013

    NEST Votes Against Management Report

    CVS Caremark Corporation

    Meeting Date: 09-May-13 Country: USA

    Meeting Type: Annual Ticker: CVS

    ISIN: US1266501006 SEDOL: 2577609

    Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    1.7 Elect Director Richard J. Swift Mgmt For Against

    Voter Rationale: Directors are expected to hold four or fewer directorships and ensure they have sufficient time and energy to discharge their role properly, particularly during unexpected company situations requiring substantial amounts of time.

    Mgmt Against ForAdvisory Vote to Ratify Named Executive Officers' Compensation

    3

    Voter Rationale: A larger percentage of the equity awards should be tied to performance conditions. At least 50% is a minimum good practice for large companies. Furthermore, plans should not pay out for below-median performance. This undermines a pay-for-performance approach which should reward above-average performance. Such practices blunt the impact of variable pay.

    SH For AgainstReport on Political Contributions 6

    Voter Rationale: Comprehensive, aggregate disclosure on political spending is best practice. Disclosure should include all state and local donations including support for 527 organizations and ballot initiatives. In addition, the company should identify key relationships with trade associations that engage in lobbying on the corporation's behalf, as well as describe the its policies and processes for giving. We ask that the board provide ultimate oversight for political donations.

    SH For AgainstPro-rata Vesting of Equity Awards 7

    Voter Rationale: In the case of a change of control, equity should only vest if an executive is not offered employment in the new company, a so-called double trigger.

    SH For AgainstReport on Lobbying Payments and Policy 8

    Voter Rationale: Comprehensive, aggregate disclosure on political spending is best practice. Disclosure should include all state and local donations including support for 527 organizations and ballot initiatives. In addition, the company should identify key relationships with trade associations that engage in lobbying on the corporation's behalf, as well as describe the its policies and processes for giving. We ask that the board provide ultimate oversight for political donations.

    DaVita HealthCare Partners Inc.

    Meeting Date: 17-Jun-13 Country: USA

    Meeting Type: Annual Ticker: DVA

    ISIN: US23918K1088 SEDOL: 2898087

    Page 2 of 21

  • Votes Against Management Report Date range covered: 04/01/2013 to 06/30/2013

    NEST Votes Against Management Report

    DaVita HealthCare Partners Inc.

    Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    3 Advisory Vote to Ratify Named Executive Officers' Compensation

    Mgmt For Against

    Voter Rationale: As in previous years we have voted against the compensation plan due to concern’s over its structure. We are particularly concerned that long-term equity awards are primarily time based with a one-year performance period. This provides short-term, not long-term performance incentives. Furthermore, the committee should not use the same metrics to evaluate short and long term performance, as this rewards, or penalizes, executives twice for the same performance. Finally, presence of legacy excise tax gross-up provisions is poor practice and the rational for three consecutive years of generous relocation bonuses is unclear and questionable. Good practices include: well disclosed and stretching performance targets; performance triggers for equity awards; using different metrics for the short and long-term plans; measuring company outcomes against its appropriate peer group; and setting awards so that executives are not rewarded for below-average performance. These and other approaches will ensure that the compensation committee designs compensation packages that build shareholder value over time.

    Mgmt Against ForAmend Omnibus Stock Plan 4

    Voter Rationale: The grant rate is too high, and may lead to excessive dilution. Furthermore, the total cost of the equity plan is excessive. Finally, executive pay is not effectively linked to company performance. Performance targets should be clearly disclosed and stretching, and the compensation committee should do more to establish compensation packages that build shareholder value over time.

    SH For AgainstPro-rata Vesting of Equity Awards 5

    Voter Rationale: In the case of a change of control, equity should only vest if an executive is not offered employment in the new company, a so-called double trigger.

    SH For AgainstReport on Lobbying Payments and Policy 6

    Voter Rationale: Comprehensive, aggregate disclosure on political spending is best practice. Disclosure should include all state and local donations including support for 527 organizations and ballot initiatives. In addition, the company should identify key relationships with trade associations that engage in lobbying on the corporation's behalf, as well as describe its policies and processes for giving. We ask that the board provide ultimate oversight for political donations.

    eBay Inc.

    Meeting Date: 18-Apr-13 Country: USA

    Meeting Type: Annual Ticker: EBAY

    ISIN: US2786421030 SEDOL: 2293819

    Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    2 Advisory Vote to Ratify Named Executive Officers' Compensation

    Mgmt For Against

    Page 3 of 21

  • Votes Against Management Report Date range covered: 04/01/2013 to 06/30/2013

    NEST Votes Against Management Report

    eBay Inc. Proposal Number Proponent Proposal Mgmt Rec

    Vote Instruction

    Voter Rationale: The plan's structure and pay-for-performance results are not sufficiently strong. In particular, incentive program goals should be stretching and the committee should not use the same metrics to evaluate short and long term performance, as this rewards, or penalizes, executives twice for the same performance. Good practices include: well disclosed and stretching performance targets; performance triggers for equity awards; using different metrics for the short and long-term plans; measuring company outcomes against its appropriate peer group; and setting awards so that executives are not rewarded for below-average performance. These and other approaches will ensure that the compensation committee designs compensation packages that build shareholder value over time.

    SH For AgainstReport on Lobbying Pa