If you own more than one stock, when the time for companies’ Annual Meetings, there is a tendency to vote for as management recommends. For some companies, there is a button to choose what management recommends or the slate and in other companies to vote means to go through all the motions. One can imagine most institutional shareholders, unless the company is losing money, tend to vote for management. On the retail side, there are reasons why you own the company and the reasons for voting or not voting will be a little more complex than institutions. Thus is it not usual for the nominees to the Board of Directors receive well over 90% of the vote, often it is in the 97 to 99% range.

In an article by River Akira Davis of the New York Times News Service, when Toyota released its voting results, one person received 71.9% while the others received in the 95% plus range. The one person is Akio Toyoda, the grandson of the founder of Toyota and the Chairman of the Board for the past 14 years. Typically, in the past, Mr. Toyoda would receive 96% plus of the vote.

Ahead of the vote, several institutional shareholders had planned to vote against Mr. Toyoda. Andres Schelde, chief investment officer of Akademiker Pension said better governance is needed at the Board level.

Mr. Toyoda is not stepping back from the company and noted he would assume responsibility for addressing the problems the led to Toyota violating vehicle-certification tests.

Linking to dividend paying stocks, even though many large companies have multiple shareholders, there tends to be shares in friendly hands that very few boards ever lose votes. If there is a loss, the vote tends to closer to 90% or less rather than 96% plus. Boards take the voting seriously and present the results in news releases and posts on the website after they have taken place. To have a vote in the 70% means Mr. Toyoda, even though he is the grandson of the founder likely needs to consider letting someone else be Chair.

There are more questions than answers, till the next time – to raising questions.