Many public companies are facing calls from some shareholders who want CEO and chairman jobs split, and now Morningstar
has been targeted. On May 15 the mutual fund research and ratings specialists will hold their annual meeting at their Chicago headquarters, and one of the items up for a vote is a shareholder proposal to make the company's chairman spot an independent one [filing
]. Founder Joe Mansueto
currently serves as chairman and CEO.
Becky Yerak of the Chicago Tribune reported
on the upcoming vote.
According to the filing, the proposal to split Mansueto's two jobs was submitted by Myra Young of Elk Grove, California, who owns more than $2,000 in Morningstar stock. Young worries that having Mansueto as both chairman and CEO "can hinder our board's ability to monitor our CEO's performance," and the proposal also included concerns about five of the board members, including Mansueto himself, who have served for at least a dozen years each.
On the flip side, Morningstar's board urged shareholders to vote against Young's proposal, noting that all but two of Morningstar's board members -- Mansueto and Morningstar's Don Phillips
-- are independent.
"As the founder of the company, Joe has an unparalleled knowledge of all aspects of the business and its history and is therefore uniquely situated to provide valuable insight to the board," the board wrote in its counter argument to Young's proposal.
Neil Anderson, Managing Editor
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