US union shareholder campaign almost unseats directors

Another example of the power of US union shareholder activism (I still think they were wrong to split tho!).

Shareholders Deliver Record Vote of No Confidence at CVS/Caremark Annual Meeting in a Direct Challenge to New Boardroom Failures

Unprecedented Withhold Votes from Roger Headrick Largest of the Year

Shareholders today withheld a record number of votes from two embattled nominees who presided over Caremark’s apparent backdating stock options and flawed takeover negotiations with CVS.

Shareholders withheld roughly 44 percent of their votes from Roger Headrick – the largest withhold vote of the year – and over 33 percent from Lance Piccolo, who both previously served on Caremark’s board. CVS had previously adopted a standard for majority voting in the election of directors so Headrick came within 6 percent of being removed from the board.

“Shareholders delivered the strongest rebuke against Headrick and Piccolo for their board performance,” said William Patterson, Executive Director of the CtW Investment Group. “The new CVS/Caremark board must act immediately to restore shareholder confidence.”

More information on the CtW Investment Group and its efforts around improving CVS/Caremark accountability is available at www.ctwinvestmentgroup.com/votenocvs