By Lisa Beilfuss
Proxy adviser Institutional Shareholder Services, in a reversal,
said Thursday that it now backs Mondelez International Inc.'s
recommended candidates for the company's board.
ISS, the largest proxy adviser in the U.S., had taken issue with
the company's lead director and the directors comprising its audit
committee, following tax-related errors Mondelez discovered in
2013. ISS, in its earlier report, cited material weakness in the
company's internal control for income-tax accounting.
An ISS representative said Thursday that the firm later reversed
its decision after receiving further clarity from Mondelez over
actions that the company has taken to bolster accounting controls.
Those steps include the hiring of additional accounting staff.
Following the discussion with Mondelez, the proxy adviser said
it now supports lead director Mark Ketchum and four others: Stephen
Bollenbach, Jorge Mesquita, Fredric Reynolds and Patrick
Siewert.
Mondelez's annual meeting is scheduled for May 20.
Earlier this decade, Mondelez, the Chicago-based maker of Oreo
cookies and Ritz crackers, identified certain tax-related errors,
which the company has said weren't material.
According to the company, the impact of the revision for the
nine months ended Sept. 30, 2013, was a $59 million reduction of
net earnings and the impact of the revision to fiscal years before
2013 was an increase in cumulative net earnings of $94 million.
Mondelez shares added 1.1% to $38.89 in midday trading
Thursday.
Write to Lisa Beilfuss at lisa.beilfuss @wsj.com
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