Lorillard Board of Directors Adopts Majority Vote Standard, Enhanced Disclosure Measures
GREENSBORO, N.C., July 29, 2011 /PRNewswire/ — Lorillard, Inc. (NYSE: LO), the third largest manufacturer of cigarettes in the United States, today announced that its Board of Directors voted to establish a majority vote standard in director elections and to enhance disclosure of Lorillard political contributions.
Meeting in New York, NY yesterday, the Board adopted the two measures unanimously. Both issues had been presented as shareholder proposals at Lorillard’s Annual Meeting of Shareholders in May 2011. Although the political contribution proposal was rejected by shareholders, the Board decided on its own to enhance the Company’s website disclosure.
“The Board of Directors took important steps today that are consistent with best practices in corporate governance,” said Murray S. Kessler, Chairman, President and Chief Executive Officer of Lorillard. “Shareholders will have the ability to exercise their franchise in electing directors and the public will have the benefit of enhanced transparency in Lorillard’s involvement in the political process.”
The Board of Directors’ provision becomes effective at the next meeting of shareholders at which directors will be elected. At that time each director nominated for election in an uncontested election will be elected by a vote of the majority of the votes cast. In contested elections a director will be elected by a plurality standard.
Disclosure of Lorillard’s political contributions, along with guidelines for government relations and political contributions, will be available on the Lorillard website: www.lorillard.com.
About Lorillard, Inc.
Lorillard, Inc. (NYSE: LO), through its Lorillard Tobacco Company subsidiary, is the third largest manufacturer of cigarettes in the United States. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard’s flagship menthol-flavored premium cigarette brand, is the top selling menthol and second largest selling cigarette in the U.S. In addition to Newport, the Lorillard product line has four additional brand families marketed under the Kent, True, Maverick, and Old Gold brand names. These five brands include 43 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard maintains its headquarters and manufactures all of its products in Greensboro, North Carolina.
Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “may,” “will be,” “will continue,” “will likely result” and similar expressions. In addition, any statement that may be provided by management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by Lorillard, Inc. are also forward-looking statements as defined by the Reform Act.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected. Information describing factors that could cause actual results to differ materially from those in forward-looking statements is available in Lorillard, Inc.’s filings with the Securities and Exchange Commission (the “SEC”), including but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available from the SEC over the Internet or in hard copy, and are available on our website at www.lorillard.com. Forward-looking statements speak only as of the time they are made, and we expressly disclaim any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.
SOURCE Lorillard, Inc.