Hill-Rom board approves governance changes

Hill-Rom Holdings board of directors approves changes to corporate governance

• On 10:43 am EDT, Tuesday October 6, 2009

NEW YORK (AP) -- Medical equipment supplier Hill-Rom Holdings Inc. said Tuesday its board of directors approved enhancements to the company's corporate governance policies, including the implementation of majority voting in uncontested elections.

Also, the company will submit amendments for shareholder votes that aim to eliminate the classified board. If approved by shareholders, beginning at the 2011 annual meeting, classes of directors whose terms expire at the annual meeting will be elected for one-year terms.

Hill-Rom also eliminated supermajority voting provisions and adopted a "recoupment" policy. The policy means all performance-based compensation and trading profits for executive officers would be subject to recoupment by the company in the event there is a material restatement of financial results due to misconduct of the individual executive.

Shares of Hill-Rom rose 21 cents to $21.57 in morning trading.