Large companies have moved rapidly toward majority voting for directors in the past year, according to a recent study by Neal, Gerber & Eisenberg, a Chicago law firm. More than 52% of the companies in the S&P 500 have now adopted a majority vote policy, bylaw or charter provision. In contrast, only 20% of S&P 500 companies had such a practice just a year earlier.
Previously, directors of most publicly traded companies were elected by plurality vote, which requires only that a nominee receive more shareholder votes than other nominees but not a majority of all votes cast.
Source: Neal, Gerber & Eisenberg, www.ngelaw.com .