CIRCOR International, Inc.
Extract: Planned Defense Change from a 8-K on 11/06/2019   Download
SEC Document
SEC Filing
On November 6, 2019, the Board of Directors of CIRCOR International, Inc. (“CIRCOR” or the “Company”) disclosed a series of enhancements to the Company’s governance, certain of which are subject to shareholder approval and will be proposed in the Company’s proxy materials in connection with CIRCOR’s 2020 Annual Meeting of Shareholders (the “2020 Annual Meeting”).

The CIRCOR Board is committed to driving value for shareholders and believes these enhancements will help ensure that the Company’s governance better aligns with best practices and shareholder interests.
 
The governance enhancements include the following:

Board Declassification. The CIRCOR Board plans to recommend to its shareholders at the 2020 Annual Meeting the elimination of its classified board and transition to a single class of directors to be elected annually. If shareholders approve the proposal, beginning with the 2020 Annual Meeting, directors will be elected for one-year terms following their current terms in office.

The declassification proposal will require the approval of shareholders representing at least two-thirds of all shares of the Company’s common stock entitled to vote on the declassification proposal.

Majority Voting Standard. The CIRCOR Board plans to recommend to its shareholders at the 2020 Annual Meeting the adoption of a majority voting standard for uncontested director elections. A majority voting standard requires each nominee standing for election to the CIRCOR Board in an uncontested election to receive a majority of the votes cast in favor of such nominee. CIRCOR’s Board, in 2016, adopted a resignation policy requiring each director standing for election to offer to resign in the event that less than a majority of the votes cast were in favor of election. At the 2020 Annual Meeting, shareholders will be asked to approve reflecting a majority vote standard in CIRCOR’s charter and bylaws.

The majority voting proposal will require the approval of shareholders representing at least two-thirds of all shares of the Company’s common stock entitled to vote on the majority voting proposal.

Rotation for Board Chair and Committee Chairs. The CIRCOR Board intends to adopt a policy for the periodic rotation of the chair of the Board and the chair of each Board committee. This policy will not be subject to shareholder approval and will become effective in connection with the 2020 Annual Meeting, at which time a new Board chair will be named.

The proposals that the CIRCOR Board intends to submit for shareholder approval at the 2020 Annual Meeting will be detailed in CIRCOR’s 2020 proxy statement, which will be filed in advance of the 2020 Annual Meeting. A date for the 2020 Annual Meeting has not yet been scheduled.