HomeBusinessCarl Icahn loses proxy fight with McDonald's over animal welfare

Carl Icahn loses proxy fight with McDonald’s over animal welfare

Carl Icahn talking at Delivering Alpha in New York on Sept. 13, 2016.

David A. Grogan | CNBC

Activist investor Carl Icahn misplaced his proxy combat with McDonald’s on Thursday, signaling that shareholders weren’t swayed by his animal-welfare considerations.

Preliminary counts of votes throughout the firm’s annual shareholder assembly confirmed that Icahn’s board nominees solely obtained votes from about 1% of excellent shares, McDonald’s stated.

“Transferring ahead, McDonald’s Board and Management Staff stay centered on persevering with to take actions that uphold and advance our values whereas committing to serve the pursuits of all our shareholders,” the corporate stated in an announcement.

Icahn solely owns about 200 McDonald’s shares, a tiny stake that did not give him a lot affect over votes. And, because the outcomes present, he didn’t win over his fellow shareholders together with his criticism of McDonald’s environmental, social and company governance commitments and calling out giant Wall Avenue corporations for “hypocrisy.”

McDonald’s chairman Enrique Hernandez, Jr., stated in ready remarks obtained by CNBC that Icahn was invited to discuss his nominations on the assembly however he withdrew two days in the past. Icahn didn’t attend the assembly.

A consultant for Icahn declined to remark to CNBC.

Icahn’s proxy combat kicked off in February when the billionaire publicly criticized McDonald’s for failing to satisfy its authentic deadline for eliminating its suppliers’ use of gestation crates for pregnant pigs. He additionally claimed the corporate was imagined to ban the usage of crates completely however has since modified the scope of its dedication.

For its half, the Chicago-based firm has blamed the Covid-19 pandemic and African swine fever outbreaks for pushing again the unique deadline of 2022 that it set a decade in the past. By the top of this 12 months, McDonald’s now expects 85% to 90% of its U.S. pork provide to return from pigs that are not stored in gestation crates in the event that they’re confirmed to be pregnant. McDonald’s has stated that eliminating the usage of the crates completely would elevate its prices and better costs for patrons.

McDonald’s stated in a submitting in early April that it anticipated to spend roughly $16 million within the proxy combat with Icahn.

The Humane Society of the USA had put forth a shareholder proposal echoing Icahn’s criticisms however withdrew it. The proposal requested the corporate to substantiate it might attain its prior purpose of eliminating the confinement of gestating pigs by 2022. In any other case, the group requested McDonald’s to reveal extra details about its pork provide chain. Such shareholder proposals are nonbinding however can ship a message to company boards about public assist for firm practices.

Josh Balk, the vp of farm animal welfare for the Humane Society, stated in an announcement that the group withdrew the proposal as a result of McDonald’s lastly acknowledged that its suppliers are nonetheless confining pregnant pigs in crates.

Icahn is waging the same proxy combat at Kroger, the most important U.S. grocery store chain operator within the U.S. Kroger’s annual assembly is scheduled for June 23.



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