Wachovia adopts changes to board election

Wachovia Corp. shareholders have approved two proposals by the company's board that will affect how directors are elected and how often. At the annual meeting today, shareholders approved a company proposal to declassify Wachovia's board. Historically the bank's board has been divided into three classes, with directors in each class serving for three-year terms. Starting at the company's annual meeting next year, directors will be elected on an annual basis. The other proposal approved by shareholders, which also goes into effect next year, requires that directors receive a majority of votes to be elected to the board. Currently Charlotte-based Wachovia directors need only a plurality of votes, meaning that nominees who receive the largest number of affirmative votes are elected, even if it's a minority of the votes cast, and regardless of the number of votes withheld by shareholders. A shareholder proposal to give shareholders an up-or-down vote on executive compensation was defeated.