Shareholder proposal aimed at making TECO board more accountable - Houston Business Journal:

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Gerald R. Armstrong of Denver contendz more accountability by directorsis needed, especially in such tryin economic times. “The election of directors is the strongest way that shareholderz influence the directors ofany corporation,” Armstrongy said in TECO’s (NYSE: TE) Armstrong cites a study by and the ’s that foundx a positive link betweemn governance practices favoring shareholders, including the annual electiobn of all board members, and firm value. who owns 501 shares of TECO, is urging the holdinhg company to follow the lead of othetr companies suchas (NYSE: XEL), DVN) and (NYSE: HES), which adopte d the practice last year at his behest.
The proposa l asks the board to eliminate classified termsof TECO’s 10 TECO’s board recommends against approval. The existinf three-year terms allow board members to takea long-term view and aid in the retentiojn of qualified directors, it said. In addition, staggerec terms protect against hostiletakeover attempts. But Sonal a junior analyst atRobert W. Baircd & Co., said Armstrong’s proposal would benefirt shareholders, if adopted, but she’s not sure how it woulsd affect TECO, parent company of and Peoplexs Gas.
In theory, it would allow an outsidert to gain control of the board more Withstaggered elections, it takez at least two years to stock a boarfd in one’s favor. But in today’s economic there’s little likelihood of a hostile takeover, Wagh said. “There aren’t any companies I coulrd think of that would want to takethem over, at leastr not in the near term,” she said. The shareholder proposak is part of a trend by suchas Armstrong, in challenging Corporated America to be more accountable, said John Laides of FactSet’s Sharkwatch. Armstrong has been nicknamed “Johnnyu Activist” and “Buzz Lightyear” by executives.
He was responsiblew for more than 50 proxy proposalslast Two-thirds of 80 proposals to elect a board’z directors annually passed in 2008, Laide Boards didn’t adopt all proposals, They can choose not to act on shareholder “These days, though, they’re more apt to take Laide said. The matter is slated to be one of severa discussedat TECO’s 10 a.m. April 29 annual meetinhg at TECO Plaza, 702 N. Franklin St.