eBay Inc (NASDAQ:EBAY) shareholders will now have more rights to take decisions! They can nominate the directors of the famous e-commerce company. In an annual shareholder meet, polls were casted, and eventually, 59% of the shareholders passed the bill to allow specific investors to play key role in nominating the members of EBAY’s board. With this inception, the trend of casting votes and selecting or nominating board members internally, would cease to exist.
EBAY Follows Suit
It was decreed that investors with 3% of the net pool of EBAY’s shares will get the golden opportunity to nominate a quarter of the directors of the esteemed company in near future. However, they should show consistency in holding the stocks for at least three years. This measure has been greeted and agreed upon by a myriad of companies in the US. These companies include Hewlett-Packard Company (NYSE:HPQ), General Electric Company (NYSE:GE), Verizon Communications Inc. (NYSE:VZ) and Bank of America Corp. (NYSE:BAC). Apparently, the move to allow shareholders to elect or nominate directors is a resoundingly bold move.
People Accept The Optimistic Move
Scott M. Stringer, the emeritus comptroller of New York City, conveyed in a comment that the voting reflects another chance and comes off as a great sign to make use of the momentum. This serves as a push towards the sentiment that the company wants its shareowners to be meaningful part of the successes and failures – in brevity, the part and parcel of EBAY.
Things To Consider For Board Members
A number of proponents of the idea suggest that this makes corporations far more accountable to a myriad of shareholders. If dissatisfied, the board can go for a toss, as the shareholders can potentially play key roles in decision-making, forming or re-forming the board.
At the meeting, EBAY shareholders nominated 15 directors who may be part of EBAY’s board. One of the directors is Jonathan Christodoro, currently an associate of the famous investor Carl Icahn.