Unitholders of Chartwell Retirement Residences have voted in support of the company’s board of directors and its compensation philosophy while rejecting a shareholder proposal calling for more information on Chartwell’s work-force policies.
While it was a clean sweep for Chartwell’s board, the number of negative votes was higher than in contests at companies that have faced less controversy. Just 69.5 per cent of unitholders approved of the company’s executive compensation philosophy at its annual meeting on Thursday; many other companies top 90 per cent in such votes.
More than 31 per cent of unitholders voted in favour of a proposal calling for Chartwell to produce a “human-capital report” on the company’s overall approach and board-level oversight of its work force. Historically, many shareholder proposals opposed by a company’s board and management garner support below 10 per cent.
The Shareholder Association for Research and Education (SHARE), which placed the measure on the ballot, called it a “very strong result” and said it “will be re-engaging with the company promptly to discuss how to address the substance of the proposal.”
Chartwell gets mixed grades from proxy advisory services over bonus payouts during COVID-19 pandemic
SHARE had also recommended Chartwell unitholders not vote to re-elect chairman Mike Harris because of the company’s performance during the COVID-19 pandemic, when it, along with other retirement home companies, came under fire for resident deaths and employment practices. Unitholders withheld 13.48 per cent of votes for Mr. Harris, a better mark for him than in 2020, when his withheld level topped 22 per cent. (Unitholders can vote in favour of director nominees or withhold their votes, but cannot vote against.)
Institutional Shareholder Services and Glass Lewis & Co., companies that advise institutional investors on proxy voting, both recommended voting for Mr. Harris. But Glass Lewis recommended a “no” vote on Chartwell’s advisory measure on executive pay, and also said unitholders should withhold votes from director J. Huw Thomas, who heads the board’s compensation committee.
Unitholders withheld 14.88 per cent of votes from Mr. Thomas; all other directors had withheld amounts ranging from 0.13 per cent to 3.5 per cent.
Chartwell spokeswoman Sharon Ranalli said in an e-mailed statement the company is committed to accountability and transparency and has been recognized consistently as one of the best governed companies in Canada. “We are pleased that our unitholders have responded with their strong support and confidence in our leadership. Our highest priority remains focused on the safety of our residents and staff.”
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David Milstead