Sirius XM's Message to Investors: Deal With It!
They show this appreciation by continually making decisions that are in the best interest of shareholders, increasing "value" in the stock price. However, one company that continues to ignore this concept is satellite radio giant Sirius XM(SIRI) and disappointingly, so do its shareholders.
I'm beginning to wonder if the shareholder revolt that I once envisioned will ever materialize? Although I enjoy watching a train wreck as much as the next person, I always hope that everyone comes out of it OK. In the case of Sirius XM, I think the body count will continue to mount.
Last week, Sirius was back to form as it once again declined shareholder wishes to remove Leon Black from its board of directors. For the third consecutive year, the company has said a big "so what" to investors' pleas to oust the founder of Apollo Global Management, who has held the post since 2001.
Black's record and influence as a director has become suspect as best. In an 8-K filing, the company reported that Black received 955.2 million votes against him vs. the 512 million to retain a post. So the question is, what was the point of the vote?
It seems that Sirius uses what is called plurality voting rules which means regardless of how the votes are tallied, as long as there were no challengers for Black who received more "in favor" votes, he was able to retain his seat.
I don't know which is more of an indictment of the company: That for the third consecutive year a board member was retained while not receiving sufficient votes, or that no other candidate wanted the job.