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Many public companies that have adopted majority voting have eliminated cumulative voting for the same reasons we explain above, as cumulative voting is inconsistent with, and may in fact thwart, the very objective of majority voting for director elections.
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Cumulative voting is also rare among large publicly-traded bank holding companies that are subject to regulation by the Federal Reserve. With the spin-off of Navient Corporation, Sallie Mae has adopted a corporate structure that is more like a bank holding company, and accordingly the Board believes it is prudent to also eliminate cumulative voting.
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Cumulative voting in combination with majority voting creates uncertainty and has the potential for negative corporate governance. With cumulative voting, a minority stockholder could take disruptive actions in opposition to the wishes of the holders of a majority of the shares.
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