Investment group says Spartan’s board election process should change

GRAND RAPIDS, Mich. A supermarket operating company’s practice for electing members of its board of directors needs to change, an investment group said at the company’s annual meeting and in an accompanying letter.

CtW Investment Group called on the board of Spartan Stores to elect members of its board every year, while also expressing concern over auditor independence and executive pay, urging Spartan’s board to “declassify” the board in time for next year’s shareholder meeting.

“The annual election of directors is a predicate for accountability to Spartan shareholders,” CtW executive director Bill Patterson said at the company’s annual meeting.

Under its current election system, Spartan has a “classified” or “staggered” board, whereby board members are elected for different periods of time depending on their position.

“Classified boards such as Spartan’s are an outdated governance practice that serves to protect entrenched boards and prevent shareholders from holding accountable the directors charged with safe-guarding their investments in the company,” Patterson wrote.