Lilly revives proposals that would lower takeover barriers

Ref: Indianapolis Business Journal
  • Eli Lilly shareholders are considering a revised proposal that would reduce the barriers to potential takeovers of the company, Indianapolis Business Journal reported Friday.

  • The proposal, which has been backed by CEO David Ricks, would eliminate a requirement that all takeover offers are approved by 80 percent of shareholders, instead setting the standard as a simple majority.

  • The plan would also include a measure to elect the entire 14-person board of directors on an annual basis opposed to staggering elections over a three-year period.

  • Proponents of the proposals contend that the current rules can entrench underperforming directors and executives.

  • Shareholders previously rejected proposals that would eliminate staggered board member elections annually over a six-year period started in 2007, while investors also rebuffed proposals to eliminate the supermajority voting requirement between 2010 and 2012.

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