Medtronic (NYSE:MDT) proposed today to allow long-term shareholders to nominate candidates for its board of directors, saying it will ask stockowners to approve the measure at its annual meeting in December.
Fridley, Minn.-based Medtronic, the largest pure-play medical device maker, said the so-called “proxy access” would allow a shareholder or a group of up to 20 shareholders to nominate candidates to make up as much as 20% of its board. Nominating shareholders would have to own at least a 3% stake held continuously for at least 3 years, the company said.
“Our board is pleased to propose the adoption of proxy access for our long term shareholders,” chairman & CEO Omar Ishrak said in prepared remarks. “This decision reflects our board’s commitment to ensure strong corporate governance policies that align the interests of Medtronic and our investors.”
Medtronic said it plans to file a detailed explanation of its proposal in its 2016 proxy statement during the 3rd quarter.