Annaly Capital Management Inc.'s board unanimously approved and amended its bylaws to declassify the company's board, and adopted a new director refreshment policy.
The New York-based capital manager's board is currently divided into three classes with each member serving a three-year term. Under the amended bylaws, directors will be nominated for election for one-year terms starting with the 2019 annual shareholders' meeting and as their terms expire.
The board is expected to be fully declassified, with all directors standing for annual election, by the annual shareholders' meeting in 2021.
Based on the new refreshment policy, an independent director may not stand for re-election at the next annual meeting taking place at the end of his or her term following the earlier of his or her 12th year on the board or 73rd birthday.