The Gillette Company announced that its Board of Directors has voted to propose an amendment to the personal care appliance maker's charter to declassify the board and provide for the annual election of all directors. Under the current classified board structure, directors are elected by classes to staggered 3-year terms.
Shareholders are expected to vote on the Board's declassification proposal at the 2005 Annual Meeting to be held May 12, 2005. Approval of the proposed resolution requires the affirmative vote of the holders of at least 75 percent of the outstanding shares of the Company's common stock.
Gillette's board of directors voted to propose the change after a thorough evaluation of the company's recent business performance, current financial position, prior shareholder proposals, and arguments for and against continuation of the classified board.
The company said that completion of the successful turnaround at Gillette and the return to consistent strong operating performance were significant factors in the board's decision. "The Board's vote in favor of the annual election of directors enhances Gillette's already strong corporate governance policies and practices," said William J. Mostyn, corporate governance officer.
to Daily News