Analysis Of Ruger Shareholder Vote
I had lamented earlier that I hadn’t seen any good analyses on how many shareholders voted on what, the breakdown of constituency, etc. That all ends with the reporting of Richard Craver of the Winston-Salem Journal. Pay attention boys and girls at CNN, MSNBC, and the other crappy pretend journalist outlets. This is how you do analysis and reporting.
Only 30 percent of Sturm, Ruger & Co.’s 17.44 million outstanding shares were cast in favor of defeating a shareholder proposal requiring the firearms manufacturer to issue a risk report on its products.
The Sisters of the Holy Names of Jesus and Mary of Marylhurst, Ore., submitted a “gun safety” proposal. It requires the Ruger board of directors to report “on its activities related to safety measures and mitigation of harm associated with company products.”
The proposals also asked for an update on where Ruger is on developing “smart guns that could significantly reduce accidental shootings and suicides.” Ruger received identical proposals from other shareholders.
Ruger announced at its annual shareholder meeting Wednesday that the proposal passed, but did not provide the vote counts. Ruger had at last count 334 employees at its plant in Mayodan.
The company reported the counts in a required regulatory filing late Monday. Just under 90 percent of its outstanding shares were represented at the meeting.
There were 7.19 million shares voted in favor of the proposal and 3.26 million against, representing 41.2 percent and 18.7 percent of Ruger’s outstanding shares, respectively.
There were 5.07 million shares in the non-voting category – 29.1 percent of outstanding shares – while 124,947 shares were listed as abstained.
[ … ]
Mutual funds giant BlackRock has told firearms manufacturers that it wants to “understand their responses” to the Florida school shooting. BlackRock owns 17 percent of Ruger and 11 percent of American Outdoor Brands through its various mutual fund indexes. Bank of America Corp. issued a similar statement.
It is not known how BlackRock cast its votes on the shareholder proposal.
He goes on to explain that the law prevents brokers from voting on matters for clients when there are no instructions from shareholders.
So the bottom line here is that [a] a lot of shareholders voted with the controllers to force the Ruger board to commission a “study” on risks associated with gun manufacturing, and [b] BlackRock owns a lot of stock in Ruger.
I’ve said it before and I’ll repeat here. Ruger had better find a way to cut its ties with corporate America and issue – and buy – enough stock to allow the board and/or employees to have a controlling interest in the company. These are dangerous times.
I understand the need for capital and thus the issuance of public stock. But this is a bridge too far and leaves Ruger in a precarious position. That needs to be fixed as soon as possible.
Prior:
Ruger Anti-Gun Shareholders More Powerful Than We Suspected?
The Next Installment Of The War Between Amalgamated Bank And Ruger
Amalgamated Bank Pressures Ruger To Support Gun Control Measures

