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CtW Investment Group to Wage ?Vote No? Campaign at TysonSubmitted by: L. Reed Walton, Publications

The CtW Investment Group on Jan. 11 released a letter urging shareholders to withhold votes from four Tyson Foods board members up for re-election.

CtW, the investment arm of the Change to Win labor federation, is calling on investors to vote against Don Tyson, John Tyson, Barbara Tyson, and Richard Bond at the Springdale, Arkansas-based meat processing company?s Feb. 1 annual meeting. The labor group claims that the four directors? failure to establish an independent nominating committee does not ensure long-term value for shareholders.

Tyson Foods has a dual-class equity structure that provides 71 percent of the voting power to Tyson family members. Accordingly, the firm qualifies as a controlled company under New York Stock Exchange rules and is not required to have an independent nominating panel.

The labor group also cites other governance practices--such as unequal voting rights and a lack of board independence. CtW also notes that the company has underperformed its S&P 500 peers, engaged in ?rampant? related-party transactions, and paid a $1.5 million fine to the Securities and Exchange Commission in 2005 over undisclosed executive perks.

Full post as published by Institutional Shareholder Services -- Corporate Governance Blog on January 15, 2008 (boomark / email).