The board of directors at Electronics for Imaging apparently batted 1.000 at the company’s annual meeting Friday when all the directors were reelected and all the proposals the board submitted to its shareholders for a vote passed.
But the perfect record obscured the fact that the board decided at the last minute to pull a proposal asking shareholders to approve a one-time “fair-value” option exchange program for the company’s top executives, according to a filing the company made with the SEC Monday.
The exchange would have allowed the officers to turn in underwater stock option grants in exchange for a lesser number of restricted shares. A similar proposal for all other employees remained on the agenda and was OK’d by shareholders.
Was the exchange program for the top brass pulled because the early proxy voting indicated it would be voted down? We asked the company, but failed to get a response.
Perhaps investors, having seen EFI’s stock price lose value over each of the last three years—it dived 57 percent in 2008 alone—were not in a giving mood when it came to the company’s leaders.