Board election requirements tightened
Walt Disney Co., the second-largest U.S. media company, adopted a majority shareholder approval policy for directors who run unopposed.
Incumbent directors who don’t get a majority must offer to resign, the Burbank-based company said Friday. The bylaw change takes effect at the company’s 2008 annual meeting.
The change gives more power to investors to control the board’s composition.
In recent weeks, AT&T; Inc., the largest U.S. phone company, and Lexmark International Inc., the second-biggest U.S. computer printer maker, announced similar changes.
Disney said plurality voting would continue to apply if the number of nominees exceeded the number of open board seats.
Shares of Disney fell 38 cents to $34.16. They have risen 43% this year.