HARTFORD, Conn., Jan. 29 (UPI) -- U.S. health-insurance giant Aetna said its shareholders will vote on a new proposal requiring that its directors be elected by majority vote.
The company said Aetna shareholders will vote at its April 27 annual meeting to be held in Grapevine, Texas, on an amendment to the articles of incorporation that would mandate that each nominee to Aetna's board receive an affirmative vote of a majority of the votes cast in order to be elected.
"Aetna has long been a leader in its commitment to sound corporate governance practices," said Ronald A. Williams, chairman and chief executive officer. "We were among the first companies to adopt a majority vote standard in our corporate governance guidelines. In addition to conducting ourselves in accordance with these guidelines, the board's action to request that we imbed the voting standard into our articles of incorporation further demonstrates our commitment to shareholders."
Aetna said the new rule would apply in uncontested elections and that the insurer would retain its existing director-resignation policy, by which incumbent directors who fail to receive a majority vote in favor of their re-election must submit a resignation for consideration by the board.
