Reebok International Ltd. last week said it will declassify its board of directors, reacting to a non-binding resolution offered at its last annual meeting. The company said its board will be declassified over three years as each directors three-year term expires. Commencing with the 2006 shareholder meeting, the entire board will be nominated for one-year terms.
Electing all directors annually, rather than one-third of directors each year, provides shareholders the potential to change a board's composition.
The company will also institute a semi-annual cash dividend, its first since 1996. The dividend will be issued at an annual rate of 30 cents per share, with the first 15 cents per share payout to be made on September 3rd to shareholders of record as of August 19, 2003.
