Proxy advisers urge replacing Alphabet chair, back shareholder proposals
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Influential shareholder advisers are urging strong action against the board at Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and even the ouster of its chairman, ahead of its annual meeting.
Proxy advisory firms Institutional Shareholder Services and Glass Lewis are urging Alphabet's shareholders to support most shareholder proposals in favor of better governance, and to vote out two directors, including chair John Hennessy, The Information noted.
Alphabet's board has recommended votes against 13 shareholder proposals. But ISS and Glass Lewis are urging support of eight of those.
ISS is asking shareholders to support increased disclosures of lobbying and to reassess building data centers in countries with poor human rights records -- and it's come out against CEO Sundar Pichai's $210M pay, according to the report.
Meanwhile, the two firms are urging the ouster of Hennessy over his continued support of the multiple-class share structure that keeps co-founders Sergey Brin and Larry Page in complete control of the company, as well as for governance and board diversity reasons.
The proxy advisers hold heavy influence with institutional shareholders, though the holders have disregarded recent years' pressure from ISS to replace directors and vote for shareholder proposals.
Alphabet's annual meeting is set for June 2.