HOUSTON, March 7 /PRNewswire-FirstCall/ -- Reliant Energy, Inc.
announced today that its Board of Directors has approved a proposed
amendment to its charter to declassify the board and bylaw amendments that
implement a majority voting standard for the election of directors. The
proposed charter amendment will be presented to shareholders for approval
at the company's annual meeting. The bylaw amendments are effective
immediately.
Proposed Charter Amendment to Declassify Board
Currently, Reliant's Board of Directors is divided into three classes,
with directors in each class serving staggered three-year terms. The board
has approved, and is proposing to the stockholders, an amendment of
Reliant's charter for the board's immediate declassification. If the
proposed charter amendment is approved at this year's annual meeting, all
directors will serve annual terms beginning in 2007.
"Last year, the board committed to move forward with the
declassification of the board if the stockholders approved a non-binding
proposal seeking declassification. The proposal was approved by
stockholders, and today's action gives our stockholders the ability to
formally amend our charter to declassify the board and to vote on all
directors beginning this year," said Bill Barnett, Reliant's lead director.
Adopted Bylaw Amendment on Majority Voting
In addition, the board approved amendments to Reliant's bylaws and
corporate governance guidelines, implementing majority voting for
directors. The amendments change the current plurality voting standard for
electing directors in an uncontested election to a majority voting standard
and implement a director resignation policy. As a result, beginning this
year, any director failing to receive a majority of votes in an uncontested
election will tender his or her resignation to the board for consideration.
"The changes adopted and proposed by the board today reflect Reliant's
ongoing commitment to strong corporate governance and will also continue to
ensure a strong alignment of interests between both shareholders and the
Board of Directors," said Barnett.
Over the last several years Reliant has demonstrated its commitment to
high corporate governance standards through, among other governance
changes, the adoption of mandatory minimum share ownership requirements for
directors and executive officers, limitations on public board service and
mandatory resignation requirements for directors in certain circumstances.
In 2006, the company added two new directors, including a director who is a
substantial institutional shareholder representative.
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides
electricity and energy services to retail and wholesale customers in the
United States. In Texas, the company provides service to nearly 1.9 million
retail electricity customers, including residential and small business
customers and commercial, industrial, governmental and institutional
customers. Reliant also serves commercial, industrial, governmental and
institutional customers in the PJM (Pennsylvania, New Jersey and Maryland)
market.
The company is one of the largest independent power producers in the
nation with approximately 16,000 megawatts of power generation capacity in
operation across the United States. These strategically located generating
assets utilize natural gas, fuel oil and coal. For more information, visit
http://www.reliant.com/corporate .
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com/corporate
CONTACT:
Dennis Barber, Investor Relations,
+1-713-497-3042, or Pat Hammond, Media Relations,
+1-713-497-7723, both of Reliant Energy, Inc.
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