Carl Icahn loses proxy fight with McDonald’s over animal welfare
Delivering Alpha, New York: September 13, 2016, Carl Icahn
David A. Grogan | CNBC
Carl Icahn, activist investor and entrepreneur lost with his proxy fight McDonald’sThis signaled that the shareholders weren’t affected by his animal welfare concerns on Thursday.
McDonald’s stated that preliminary votes counted at Icahn’s shareholder meeting indicated that Icahn’s nominated board members received votes from approximately 1%, according to McDonald’s.
McDonald’s Board and Leadership Team continue to focus on moving forward and taking action that will uphold and further our values, while also committing themselves to serving the interests of our shareholders,” they said.
Icahn has only 200 McDonald’s shares. This is a small stake which doesn’t allow him to influence votes. He failed to convince his shareholders through his criticisms of McDonald’s commitments in environmental, social, and corporate governance, and his call outs for large Wall Street corporations for hypocrisy.
CNBC did not reach Icahn immediately for comment.
Icahn, a public critic of the fast food giant, criticized Icahn for failing to meet its initial deadline regarding removing suppliers from gestation crates used by pregnant pigs. He claimed that Icahn had said the company should ban all crates but now has expanded its commitment.
The Chicago-based restaurant has claimed that the Covid-19 pandemic as well as outbreaks of African swine flu have pushed back its original deadline for 2022, which it had set 10 years ago. McDonald’s expects to have 85% to 90% U.S. pork supplies from pigs not kept in gestational crates by the end of 2019. McDonald’s claims that the elimination of these crates would increase its costs as well as raise prices for its customers.
McDonald’s stated in an April filing that it expects to spend approximately $16 million on the proxy fight against Icahn.
At the moment, he is engaging in a proxy war at KrogerThe annual meeting of Kroger, America’s largest supermarket chain operator is set for June 23.