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McDonald’s is reportedly set to win its proxy fight with activist Carl Icahn, according to early voting tallies, after the two clashed over the use of gestation crates in the fast-food giant’s supply chain.
In a report from The Wall Street Journal, which cited people close to the matter, McDonald’s is far ahead of Icahn in early vote tallies. Votes will continue to be cast until the end of the company’s shareholder meeting Thursday.
Earlier this year, the activist nominated two directors to the company’s board, slamming it for buying pork from companies that confine pregnant pigs to small crates, calling the practice inhumane. McDonald’s responded that it was phasing out the crates from its supply chain but argued that a swift shift to 100% ‘crate-free’ pork is nearly impossible today due to production constraints and the subsequent “significantly” increased costs.
Icahn tried appealing to index funds in his campaign, who he argued have subjectively selected which environmental, social, and governance principles they care about and have put too little emphasis on animal welfare.
McDonald’s’ share price has risen 3.7% so far this week, remaining up 5.3% in the past year.