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Microchip Technology Incorporated (MCHP) got what it asked for at its August 18 annual meeting: stockholder approval to add 12 million shares to the 2004 Equity Incentive Plan.
The case for reading this as a clean sweep requires looking past the say-on-pay tally, where 77.3 million shares voted against executive compensation packages, the heaviest opposition of any item on the ballot.
The equity plan amendment passed 430.8 million votes to 13.8 million, with 36.3 million broker non-votes sitting out. Adding 12 million shares to an existing plan is a dilution decision.
When a board brings it to a vote, it signals that current equity reserves are running lean relative to retention and incentive demands.
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