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Money Management Executive

Putnam Posts Proxy Guidelines on Web Site

May 15, 2003, 1:00 a.m. EDT 1 Min Read

Putnam Investments has posted its proxy voting guidelines on its Web site, Reuters reports.

Putnam will vote against stock option plans that permit replacing or repricing of underwater options in companies whose stock it owns.

Putnam also will withhold votes for the entire board of directors if the board does not have a majority of independent directors or is the board’s nominating, audit and compensation committees are not entirely staffed by independent directors.

"The thrust of Putnam’s proxy guidelines is to strengthen the accountability of corporate boards of directors to shareholders," John Hill, chairman of the board of Putnam Trustees, said in a statement.

Fidelity has also let investors know how it will vote on shareholder motions at companies in which it owns shares. All fund firms are required to release proxy voting guidelines this summer, after corporate scandals put them under pressure to be more impartial about company management. Next summer, fund firms will be required to release their proxy voting records.

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The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.
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