In an April 27 the Wall Street Journal article, Ralph Walking Ph.D., executive director of the center for corporate governance at Drexel, weighed in on NYSE Euronext director Ricardo Salgado’s resignation Thursday, which followed shareholders’ vote against his reelection. Salgado, vice chairman of Portugal’s Banco Espirito Santo SA, had drawn criticism for his failure to attend at least 23 of 31 board meetings last year. His resignation, required by NYSE Euronext’s bylaws, was accepted by the board late Thursday.
Walking, who is also LeBow’s Stratakis Chair in Corporate Governance and Accountability, notes that “low votes for directors are rare, and it’s unusual that they resign thereafter.” The company had repeatedly defended Salgado, and in securities filings and Thursday’s shareholder meeting, NYSE Euronext officials assured that he had pledged to attend more meetings this year.
Salgado’s defeat marks the latest setback for the Big Board, which earlier this year failed to persuade European regulators to approve its merger with German exchange group Deutsche Börse AG.