• Amazon shareholders yesterday approved a 20:1 stock split, meaning that, according to the company's regulatory finding, "each company shareholder of record at the close of business on May 27, 2022, will have 19 additional shares for every one share held as of such date reflected in their accounts on or about June 3, 2022. Trading is expected to begin on a split-adjusted basis on June 6, 2022.”
It is the company's first stock split since a 2:1 split in 1999. The Puget Sound Business Journal writes that "the 20:1 split was approved by the board of directors in March and recommended at the annual shareholder meeting. The goal of the split was to make it more affordable for individuals to invest in the company, as it anticipates long-term growth. Before it dropped this quarter, Amazon share prices had crested $3,500 per share." It closed yesterday at $2135.50.
Geekwire writes that "faced with a barrage of proposals on issues ranging from unionization to the environment, a majority of Amazon shareholders followed the board’s lead and rejected an unprecedented slate of issues up for consideration Wednesday morning … All nominated board members were approved by a majority of shareholders."
The story notes that "Amazon warehouse workers spoke in support of proposals seeking to affirm their right to unionize, and seeking the consideration of hourly workers as candidates for openings on the board." In addition, "Brad Lander, the New York City comptroller, asked shareholders to vote against board members Judith McGrath and Daniel Huttenlocher, chair and member, respectively, of the board’s Leadership Development and Compensation committee. He asserted that they 'failed to provide independent oversight of human capital management on behalf of the shareholders.'
"Lander made the pitch as he presented a proposal seeking to examine the impact of Amazon’s health and safety practices on racial and gender disparities in workplace injury rates."
But shareholders sides with Amazon management, which "detailed the company’s existing initiatives across a range of issues raised by the shareholder proposals."
In addition, CNBC reports, "Amazon CEO Andy Jassy said the company is focused on returning to a 'healthy level of profitability' after slowing retail sales and rising costs ate into its latest quarterly earnings. 'We have effectively lowered our cost structure before and I have high confidence that we’ll get back on track as we work through these incredibly unusual past two years,'" Jassy told the annual shareholder meeting.
