(PHOENIX) – A Teamster shareholder proposal to address Swift Transportation’s dual class stock structure received 79.2 percent support by shareholders of the company’s Class A, publicly traded shares, based on results disclosed by the company in its 8-K dated May 13, 2014 and filed with the Securities & Exchange Commission (SEC).
The company’s dual class stock structure, which provides Swift’s founder and CEO Jerry Moyes majority control over a company for which he holds minority stake, has come under scrutiny as investors become increasingly concerned by the CEO’s excessive pledging of Swift’s stock as collateral for personal loans.
Moyes has pledged 62.8 percent of his equity stake in the company and created material risk for public shareholders, according to ISS, the country’s largest shareholder advisory service, which recommended that shareholders support the Teamster proposal. Citing concerns about the CEO’s excessive pledging of stock as collateral for personal loans, ISS also recommended that shareholders withhold support from all incumbent members of the board’s audit committee for the second consecutive year as they are responsible to oversee the management of enterprise and financial risks as well as potential conflicts of interest.
“There is a clear mandate for Swift’s board to exercise its independence from CEO Moyes and pursue a plan to recapitalize the company and give all shareholders an equal vote,” said Ken Hall, Teamsters’ General Secretary-Treasurer. “It’s the only way to establish any accountability at Swift and protect shareholder interests and assets. Failure to act on this majority supported proposal should prompt the resignation of the governance committee chair.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Follow us on Twitter @Teamsters and “Like” us on Facebook at www.facebook.com/teamsters.