Tyson Urges Shareholders To Reject Repeat Proposals

Springdale meat producer Tyson Foods Inc. has asked its shareholders to vote down two proposals that are old hat to its annual shareholders meeting. This year’s confab is set for Feb. 6 at the Walton Arts Center in Fayetteville.

The Sierra Club has introduced a proposal that would require an independent director to serve as the company’s chairman. John Tyson, grandson of the firm’s founder, is both chairman and CEO.

Another group wants to do away with the two-tiered stock system that gives preferred stock holders — primarily former Senior Chairman Don Tyson — 10-for-one voting power on their shares.

Neither measure will likely pass, however, since the Tyson family both directly and indirectly controls the lion’s share of the voting power.

The Sierra Club said the board’s ability to scrutinize management plans may be crippled when the board chair is also the CEO.

“By requiring that the chair be an independent director, the board may be able to bear more critical review of basic management plans,” the Sierra Club said in its proposal.

The environmentalist group said it believes a review is especially important at Tyson because of its exposure to environmental liability.

In Tyson’s proxy statement, it said it should be able to hire the best person for the job.

“The board believes the interest of the company and its shareholders are currently best served by having John Tyson act as a bridge between the board and the operating organization,” the proxy said.

In 2003, John Tyson, 50, earned a $993,590 salary with a $2.5 million bonus plus $325,286 in other compensation. He also received $16.9 million in restricted stock awards. In 2002, Tyson’s salary was $1 million with a $3.48 million bonus and $172,463 in compensation, while receiving $2.8 million in restricted stock awards.