The Allstate Corporation said in a written statement this week that adoption of a new policy will strengthen the company’s corporate governance practices.
The new policy will require any nominee for director who receives more votes withheld from election than are cast for election to submit his or her resignation to the board. The board’s nominating and governance committee will then consider the tendered resignation and recommend to the board whether to accept or reject it, the company statement said.
In considering the tendered resignation, the nominating and governance committee will evaluate factors such as the director’s length of service, particular qualifications and contributions to the company, the reasons underlying the withhold vote if known, and whether the underlying reasons are considered curable.
“The board believes this policy enhances its accountability to shareholders by formalizing the consequences of a “Majority Withheld Vote” and demonstrating its responsiveness to director election results while at the same time protecting the long-term interests of the company and its shareholders,” said Edward M. Liddy, chairman and chief executive officer, The Allstate Corporation. “The adoption of this policy is in keeping with Allstate’s desires to be a leader in corporate governance practices and procedures and an advocate of public company transparency.”
Now celebrating the 75th anniversary of the founding of Allstate Insurance Company, The Allstate Corporation is the nation’s largest publicly held personal lines insurer. Products for Allstate are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.
Source: Allstate Corp.
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