Qualcomm Sets Three-Year Investor Rule for Proxy Nominations
- Shareholder threshold aimed at deterring short-term activists
- Qualcomm conducting strategic review of its operations
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Qualcomm Inc. has changed its proxy process to require that shareholders keep their stake for at least three years before pushing nominees for the chipmaker’s board, a move aimed at making it harder for short-term investors to influence management and strategy.
Shareholders, or groups of as many as 20 shareholders, with at least a 3 percent stake in Qualcomm held “continuously for at least three years” can nominate board candidates and include materials backing their nominees in the company’s proxy information, the San Diego-based company said Friday in a filing. The shareholders can contest as many as one-fifth of the board slots, according to the filing.