UPDATE 1-CtW opposes re-election of members of Mylan board's governance panel
(Adds background on CtW)
June 7 (Reuters) - Union pension fund adviser CtW Investment Group on Friday urged Mylan NV shareholders to vote against the company's four director nominees, who are on the board's nominating and governance committee.
In a letter to shareholders http://ctwinvestmentgroup.com/wp-content/uploads/2019/06/Mylan_Final_6_7_2019.pdf, CtW said that Mylan needs a clawback that includes recoupment of executive pay for misconduct related to supervisory failures and not just conduct that results in financial restatements.
CtW said it was opposing the re-election of JoEllen Lyons Dillon, Robert Cindrich, Mark Parrish and Sjoerd Vollebregt because of what it views as "a serious disregard for the rights of Mylan shareholders."
Mylan did not immediately respond to Reuters request for comment.
CtW works with union pension funds affiliated with Change to Win and estimates that the funds with whom it works hold about 885,000 shares of Mylan.
Lawsuits regarding Mylan's role in the opioid crisis and price fixing of generic drugs, and a lack of clarity on a potential revamp of the company's strategy have weighed on the generic drugmaker's shares, which are currently trading around their near 8-year low.
CtW's letter comes after Mylan relegated a proposal https://www.sec.gov/Archives/edgar/data/1480561/000121465919003912/r530190px14a6n.htm filed by UAW Retiree Medical Benefits Trust regarding strengthening the company's executive pay clawbacks as an item of discussion for which shareholders may only express a "shareholder view" for or against the proposal.
Shareholder proposals are typically presented as agenda items to be voted on, along with management proposals, by shareholders.
"The treatment of this as a non-voting item ultimately diminishes shareholder rights and the utility of the whole exercise of holding the annual general meeting and having shareholders vote," Tejal Patel, director of corporate governance at CtW told Reuters.
The nominating and governance committee is among the eight committees established by Mylan's board. Mylan's annual general meeting is scheduled for June 21. (Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Shailesh Kuber)
