The shareholder proposal requiring Tyco International Ltd. to reincorporate to Delaware from Bermuda was defeated by a 73.6% vote at the companys annual meeting today in Pembroke, Bermuda. But Richard Ferlauto, director-pension investment policy for the American Federation of State, Country Municipal Employees, was encouraged by the results, saying the support, at 26.4% of the vote, was higher than the 15% to 20% projected. The $600 million AFSCME pension fund sponsored the resolution and received support among major public pension funds.
Only one of the six non-binding shareholder proposals received majority support: a resolution calling for a shareholder vote for all executive golden parachute severance agreements. The vote was 57.7% vs. 42.3%. The $200 million AFL-CIO pension fund, which sponsored that resolution, will ask the board to detail the steps it will take in implementing the proposal.
Also, 23% of shareholders voted against a management proposal to appoint PricewaterhouseCoopers as auditor, a significant vote in opposition, said Mr. Ferlauto.