Cendant Eyes Annual Board Elections
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Cendant Corp., the largest U.S. travel and real estate services company, will ask shareholders to approve a plan requiring annual reelection of directors and said attendance at board meetings would be mandatory as it seeks to strengthen corporate governance.
Under the new regulations, executive vice presidents must own Cendant common stock worth twice their base salary, and Chief Executive Henry Silverman’s stake must be six times as much, the New York-based owner of Century 21 brokerages and Avis rental cars said.
Members of Cendant’s management who sit on its board will be prohibited from serving as directors of other publicly traded companies. A proposal to have board members stand for reelection each year instead of every three years will be voted on at the company’s annual meeting in April. Cendant last year required two-thirds of its board to be independent to enhance oversight.
Attendance at board meetings will be mandatory except for an “exceptional cause,” Cendant said. Board members from outside the company will be limited in how many other boards on which they may sit.
Shares of Cendant rose 64 cents to $22.59 on the New York Stock Exchange.
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