UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
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☒ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material Pursuant to §240.14a-12 |
DAILY JOURNAL CORPORATION
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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DAILY JOURNAL CORPORATION
___________________
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To be held on February 24, 202116, 2022
___________________
To the Shareholders of
DAILY JOURNAL CORPORATION
The Annual Meeting of Shareholders of Daily Journal Corporation (the “Company”) will be held virtually on February 24, 202116, 2022 at 10:00 a.m. Pacific Time. Due to the COVID-19 pandemic, we will not have an audience at the meeting. Instead, Yahoo will stream the event worldwide. You should visit their website at www.YahooFinance.com on the day of the meeting. Another important change is that ourOur shareholders should send their questions to Julia LaRoche,Becky Quick, a journalist at Yahoo Finance,CNBC, who will then submit questions to the Board.Board or Baker Tilly US, LLP, as appropriate. Please send questions by February 15, 202114, 2022 at 5:00 p.m. Pacific Time to the following email address: DailyJournalQuestions@YahooFinance.com[DailyJournalQuestions@CNBC.com]. Given time constraints, we unfortunately anticipate that not all questions will be asked and answered at the Annual Meeting.
The purpose of the Annual Meeting is to consider and vote upon the following matters, as more fully described in the accompanying Proxy Statement which is attached hereto and incorporated herein:
(1) | Election of four members to the Board of Directors. |
(2) | Ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the current fiscal year. |
(3) | Such other matters as may properly come before the meeting. |
The Board of Directors has fixed the close of business on December 18, 202016, 2021 as the record date for the determination of shareholders entitled to receive notice of and to vote at the Annual Meeting or any adjournment thereof.
IMPORTANT NOTICE REGARDING THE AVAILABLITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING
TO BE HELD ON FEBRUARY 24, 202116, 2022
This Notice of Annual Meeting of Shareholders, the accompanying Proxy Statement and the Company’s Annual Report for the fiscal year ended September 30, 20202021 may be viewed and printed from the Company’s website at proxy.dailyjournal.com.proxy.dailyjournal.com.
By Order of the Board of Directors |
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Michelle Stephens | |||
Secretary | |||
December 29, 2021
___________________
IMPORTANT
SHAREHOLDERS ARE URGED TO DATE, FILL IN, SIGN, AND MAIL THE ENCLOSED PROXY IN THE ACCOMPANYING ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.
DAILY JOURNAL CORPORATION
915 E. 1st Street
Los Angeles, California 90012
PROXY STATEMENT
FOR ANNUAL MEETING OF SHAREHOLDERS
February 24, 202116, 2022
Your proxy in the enclosed form is solicited by the Board of Directors of the Company for use at the Annual Meeting of Shareholders to be held virtually on February 24, 202116, 2022 at 10:00 a.m. Pacific Time and at any adjournment thereof. Due to the COVID-19 pandemic, we will not have an audience at the meeting. Instead, Yahoo will stream the event worldwide. You should visit their website at www.YahooFinance.com on the day of the meeting. Another important change is that ourOur shareholders should send their questions to Julia LaRoche,Becky Quick, a journalist at Yahoo Finance, who will then submit questions to the Board.Board or Baker Tilly US, LLP, as appropriate. Please send questions by February 15, 202114, 2022 at 5:00 p.m. Pacific Time to the following email address: DailyJournalQuestions@YahooFinance.comDailyJournalQuestions@CNBC.com. Given time constraints, we unfortunately anticipate that not all questions will be asked and answered at the Annual Meeting.
Each properly executed proxy received prior to the Annual Meeting will be voted as directed, but, if not otherwise specified, proxies will be voted (1) for the election of the four nominees named in this Proxy Statement to the Board of Directors and (2) to ratify the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the current fiscal year. As to any other business which may properly come before the meeting and be submitted to a vote of shareholders, proxies received by the Board of Directors will be voted in accordance with the discretion of the holders thereof.
Each shareholder has the right to revoke such shareholder’s proxy at any time before it is voted. A proxy may be revoked by filing with the Secretary of the Company at 915 E.1st Street, Los Angeles, California 90012, a written revocation or a properly executed proxy bearing a later date.
The Company will bear the cost it contracts for in the solicitation of proxies. In addition to the use of the mail, proxies may be solicited by personal interview, telephone, fax or e-mail by officers, directors and other employees of the Company (none of whom will receive additional compensation therefor). The Company will also request persons, firms and corporations holding shares in their names, or in the names of their nominees, which are beneficially owned by others, to send or cause to be sent proxy materials to, and obtain proxies from, such beneficial owners, and, on request, will reimburse such holders for their reasonable expenses in so doing.
The close of business on December 18, 202016, 2021 has been fixed as the record date for the determination of shareholders entitled to notice of and to vote at the Annual Meeting and any adjournment thereof. The only voting securities of the Company are the 1,380,746 shares of Common Stock outstanding as of the record date. A majority of the Company’s outstanding shares of Common Stock as of the record date must be represented in person or by proxy to constitute a quorum for the Annual Meeting. All shares represented in person or by proxy, regardless of the nature of the vote, the indication of abstention or the absence of a vote indication, including broker non-votes, will be counted to determine the number of shares represented at the meeting. This Proxy Statement and the enclosed form of proxy are first being mailed to shareholders on or about January 11,December 29, 2021.
ELECTION OF DIRECTORS
(Item 1 on the Proxy Card)
The Bylaws of the Company permit from three to seven members on the Board of Directors. Presently, fivefour directors serve on the Board, but Dr. Gary Wilcox is not standing for reelection, and the number of directors will be reduced to four effective as of the Annual Meeting.Board. The directors are elected annually and serve until the next annual meeting of shareholders and the election of their successors.
The independent members of the Board of Directors have nominated for election to the Board of Directors the four nominees listed below. Shareholders have cumulative voting rights in the election of directors. This means that each shareholder has the right to cast a number of votes equal to such shareholder’s number of shares of Common Stock multiplied by the number of directors to be elected, and to cast all of such votes for one nominee or distribute such votes among two or more nominees. The right to vote cumulatively is dependent on a shareholder’s giving notice of such shareholder’s intention to cumulate votes to an officer of the Company in writing 48 hours before the meeting commences. Once such notice is given, all other shareholders entitled to vote will be without further notice entitled to cumulate their votes. Unless otherwise instructed, the persons named in the accompanying form of Proxy will vote the proxies for the nominees listed below, reserving the right, however, to cumulate such votes and to distribute them among the nominees at their discretion.
Because this is an “uncontested” election in which there are four nominees for four seats on the Board of Directors, a director nominee shall be elected to the Board of Directors if the votes cast in favor of his or her election exceed the votes cast against his or her election. Abstentions are not counted as votes cast. Broker non-votes (which occur when a broker or nominee does not receive voting instructions from the beneficial owner and does not have discretion under applicable rules to direct the voting of the shares, such as in the election of directors) will not affect the outcome.
The Board of Directors of the Company does not contemplate that any of the following nominees will become unavailable prior to the meeting, but if any such persons should become unavailable, proxies will be voted for such other nominees as may be selected by the Company’s independent directors.
The Company is headquartered in Los Angeles, California, and is therefore subject to California laws governing the composition of the boards of directors of public companies. By the end of 2021, as a company with four directors, the Company is required by California law to have at least one or more women directorswoman director and at least one or more directorsdirector from an “underrepresented community,” depending oncommunity”. The Company believes the size of thecurrent Board of Directors. TheDirectors (and the slate of director nominees listed below does not complybelow) complies with these specifications, but the Company intends to comply with any applicable California legal requirements regarding board composition by the end of 2021.composition.
Director Nominees
Below is certain information as of December 31, 202023, 2021 about each nominee for election to the four seats on the Company’s Board of Directors:
Name | Age | Principal Occupation Last Five Years | ||
Charles T. Munger | 97 | Charles T. Munger is Chairman of the Board and a director of the Company and also serves as Vice Chairman and a director of Berkshire Hathaway Inc., a holding company with interests in, among other things, insurance companies, corporations engaged in the retail sale of consumer goods, and various manufacturers. Mr. Munger is also a director of COSTCO Wholesale Corporation, a discount merchant. | ||
Qualifications and Skills: | The Company benefits from Mr. Munger’s leadership for numerous reasons, not the least of which are his experience and abilities as a successful investor, and his focus on creating long-term growth in shareholder value. |
Name | Age | Principal Occupation Last Five Years |
Mary Conlin | 57 | Ms. Conlin joined the Board of Directors in May 2019. Ms. Conlin is retired. She was the former Director and |
Qualifications and Skills: Ms. Conlin graduated from Harvard Business School, and has decades of experience in advertising, marketing and promotions. She adds a valuable perspective that benefits both the Company’s | ||
John B. Frank | 65 | Mr. Frank has been Vice Chairman since 2014, and Director since 2001, of Oaktree Capital Group, LLC (“Oaktree Capital”), a global investment company with expertise in |
Qualifications and Skills: Mr. Frank has extensive experience with business leadership, operations and finance, having served for over 20 years as a senior executive of Oaktree Capital, a global investment management company conducting business worldwide from 19 offices around the globe. His work at Oaktree Capital has included two decades of experience with government officials regarding regulatory and public policy issues. While a partner of Munger, Tolles & Olson LLP, Mr. Frank had extensive experience with mergers and acquisitions and strategic, finance and corporate governance issues. | ||
Maryjoe Rodriguez | 38 | Ms. Rodriguez has been employed by the Company since September 2007 and joined the Board of Directors in December 2021. Ms. Rodriguez was the Assistant to the President and has served as the Vice President of the Company’s subsidiary, Journal Technologies, Inc., since October 2018 and Chief Operating Officer since October 2019. She works with Journal Technologies’ other senior managers on bids, contracts, escalated issues, personnel matters and special projects. |
Qualifications and Skills: Having grown up with the Company, Ms. Rodriguez has deep comprehension and knowledge of both the Company’s publishing business and its software business, with a recent focus on Journal Technologies. Her accumulated work experience and managerial skills are of great value in helping the Board of Directors understand the Company’s business operations. |
Proxies given without instructions will be voted FOR the nominees listed above. |
The Company’s only executive officer, Gerald Salzman, is not standing for election to the Board of Directors, but he continues to serve as the Company’s Chief Executive Officer, Chief Financial Officer, Treasurer and Assistant Secretary. Also, one of the Company’s current directors, Peter D. Kaufman, is not standing for election. Certain information about Messrs. Salzman and Kaufman as of December 23, 2021 is set forth below:
Gerald L. Salzman | 82 | Gerald L. Salzman served on the Company’s Board of Directors from 1986 until December 2021. He acts as the Company’s Chief Executive Officer, Chief Financial Officer, Treasurer and Assistant Secretary. |
Qualifications and Skills: Mr. Salzman offers the Company a unique broad range of skills, which together are invaluable. Few individuals would be capable of serving as the principal executive officer, principal financial officer and principal accounting officer of a public corporation. Having served the Company for more than 30 years, Mr. Salzman has a deep understanding of the Company’s businesses and their evolution over time. | ||
Peter D. Kaufman | Peter D. Kaufman joined the Board of Directors in 2006. Mr. Kaufman is Chairman and Chief Executive Officer of Glenair, Inc., a | |
Qualifications and Skills: Mr. Kaufman has many years of practical experience as a chief executive officer, and he specializes in fostering a business culture that motivates and retains exceptional employees. His background in accounting also makes him a valuable member of the Company’s audit committee. | ||
Proxies given without instructions will be voted FOR the nominees listed above.
Each of the nominees listed above currently serves on the Board of Directors. There is also a fifth director who is not standing for re-election, and certain information about him as of December 31, 2020 is set forth below:
Until August 2020, the Company had a sixth director: J.P. Guerin. Mr. Guerin ably and loyally served the Company as a director and Vice Chairman from 1977 until his retirement on August 31, 2020. Mr. Guerin, who will always be known to us as “Rick,” died on October 13, 2020. We miss him very much.
CORPORATE GOVERNANCE
The Board of Directors has determined that each of Messrs. Munger, Kaufman and WilcoxKaufman and Ms. Conlin is “independent” in accordance with NASDAQ Listing Rule 5605(a)(2). Accordingly, a majority of the members of the Board of Directors are independent, as required by NASDAQ Listing Rule 5605(b)(1). The Board of Directors has also determined that Mr. Frank will qualify as independent.
The Board of Directors has two standing committees: the audit committee and the compensation committee. The audit committee both of which consistedconsists of Messrs. Munger and Kaufman and WilcoxMs. Conlin. The compensation committee consists of Mr. Kaufman and Ms. Conlin as of September 30, 2020, the end of fiscal 2020. Mr. Guerin also served on both committees prior to his retirement.Conlin. During the fiscal year ended September 30, 2020,2021, the Board of Directors held two meetings. The audit committee held one meeting,two meetings, and the compensation committee also held one meetingno meetings during the fiscal year. Each incumbent director attended all of the meetings of the Board and any committee of which he or she was a member.such meetings. The Company does not require its directors to attend the Annual Meetings of Shareholders. Due to the COVID-19 pandemic, the 2021 Annual Meeting of Shareholders was held virtually with no audience, but allthe Company believes each of the Company’sthen-serving directors including Mr. Guerin, attendedparticipated in the 2020 Annual Meeting.virtual meeting.
Audit Committee
The audit committee was established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (the “Exchange Act”) and is responsible for assisting the Board in fulfilling its responsibilities as they relate to the Company’s accounting policies, internal controls, and financial reporting practices. The audit committee operates in accordance with a written charter that is not available on the Company’s website but that iswas attached as Appendix A to thisthe proxy statement.statement for the 2021 Annual Meeting of Shareholders. The Board of Directors has determined that Mr. Kaufman is, and that Mr. Frank will be, an “audit committee financial expert,” as that term is used in Item 407 of Regulation S-K promulgated under the Exchange Act. The Board of Directors believes that each of Messrs. Munger, Kaufman and WilcoxFrank and Ms. Conlin are independent under NASDAQ Listing Rule 5605(a)(2), meets the criteria for independence set forth in Rule 10A-3 under the Exchange Act and satisfies the other audit committee membership requirements specified in NASDAQ Listing Rule 5605(c)(2)(A).
Compensation Committee
The compensation committee is responsible for determining the compensation of the Company’s Chief Executive Officer and all of its other executive officers, if any. As required by NASDAQ Listing Rules, the compensation committee operates under a written charter that is not available on the Company’s website but that iswas attached as Appendix B to thisthe proxy statement.statement for the 2021 Annual Meeting of Shareholders. The Company’s only executive officer, Gerald L. Salzman, does not determine or recommend the amount or form of his compensation or of any director’s compensation. The compensation committee relies on its own good judgment in carrying out its duties and does not waste shareholder money on compensation consultants. The compensation committee may form and delegate authority to subcommittees as it deems appropriate.
Nominations
There is no standing nominating committee, but the Company’s independent directors other than Mr. Munger are responsible for selecting nominees for election to the Board of Directors. The Company believes that this group of independent directors is able to fully consider and select appropriate nominees for election to the Board without operating as a formal committee or pursuant to a written charter. For this same reason, the Company does not have a formal policy by which its shareholders may recommend director candidates, but candidates recommended by shareholders will certainly be considered. A shareholder wishing to submit such a recommendation should send a letter to the Secretary of the Company at 915 E. 1st Street, Los Angeles, California 90012. The mailing envelope must contain a clear notation indicating that the enclosed letter is a “Director Nominee Recommendation.” The letter must identify the author as a shareholder and provide a brief summary of the candidate’s qualifications, as well as contact information for both the candidate and the shareholder. At a minimum, candidates for election to the Board must meet the independence requirements of NASDAQ Listing Rule 5605(a)(2) and Rule 10A-3 under the Exchange Act. Candidates should also have relevant business and financial experience, and they must be able to read and understand fundamental financial statements. Candidates recommended by shareholders will be evaluated in the same manner as candidates recommended by anyone else, although the independent directors nominating the slate may prefer candidates who are personally known to the existing directors and whose reputations are highly regarded. All relevant qualifications, as well as the needs of the Company in terms of compliance with NASDAQ listing standards, Securities and Exchange Commission rules and California law, will be considered.
Board Leadership Structure and Role in Risk Oversight
Separate individuals currently hold the positions of Chairman and Chief Executive Officer, and Mr. Munger, who serves as Chairman, is not an employee. As Chairman, Mr. Munger leads the Board of Directors and coordinates the Board’s activities, including the setting of relevant agenda items for Board meetings (in consultation with Mr. Salzman, the Chief Executive Officer). The Company believes this structure provides an appropriate allocation of leadership responsibilities and an effective way for the Board to carry out its obligations on behalf of shareholders.
The full Board of Directors is responsible for managing the material risks facing the Company. Certain oversight responsibilities that touch on the risks facing the Company have been delegated to the audit committee and compensation committee in the ordinary course, but Mr. Salzman reports to the full Board, and the full Board participates in the discussion and management of any material risks. On an annual basis, and more frequently as deemed appropriate, the Board evaluates with Mr. Salzman the overall risks facing the Company, including risks to its business and to its internal operations, as well as possible actions that may be taken to address those risks. As described later in this Proxy Statement, the Company has designed its executive compensation program to align the interests of Mr. Salzman with those of the shareholders, and the Company does not believe that its executive compensation arrangements, plans, programs and policies are likely to pose a material risk or otherwise have a material adverse effect on the Company.
Shareholder Communication with the Board of Directors
Shareholders who wish to communicate with the Board of Directors or with a particular director may send a letter to the Secretary of the Company at 915 E. 1st Street, Los Angeles, California 90012. The mailing envelope must contain a clear notation indicating that the enclosed letter is a “Shareholder-Board Communication” or “Shareholder-Director Communication.” All such letters must identify the author as a shareholder and clearly state whether the intended recipients are all members of the Board or just certain specified individual directors. The Secretary will make copies of all such letters and circulate them to the appropriate director or directors.
Code of Ethics
The Company has adopted a Code of Ethics that applies to all directors, officers and employees of the Company. The Code of Ethics was attached as an exhibit to the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2020.
Related Person Transactions
In accordance with the audit committee’s written charter, any related person transaction that the Company would be required to disclose pursuant to Item 404(a) of Regulation S-K must be reviewed and approved by the audit committee. The audit committee also reviews and approves certain other transactions between the Company and related persons or their family members, including the employment or engagement by the Company of any family members. The audit committee will approve transactions that it believes are in the best interests of shareholders using its judgment and based on the facts and circumstances of each situation.
The Company utilizes the software services of Jon Darin Salzman, the son of the Company's Chief Executive Officer, Gerald L. Salzman. In fiscal 2020,2021, Jon Darin was paid approximately $125,000, and his aggregate compensation is expected to be at approximately the same level for fiscal 2022.
Ms. Rodriguez is an employee of the Company. She was paid a salary, bonus and incentive compensation amount totaling $465,000 in fiscal 2021. The audit committee approved thisShe also received an incentive compensation grant of units entitling her to receive .83% of the Company’s earnings for the current and the next nine years under the Management Incentive Plan in fiscal 2021, bringing her aggregate grant to 2.21% of the Company’s income before taxes and certain other items on a consolidated basis. Her aggregate compensation and unit grant amount are expected to be at approximately the same level for fiscal 2022. Ms. Rodriguez does not receive additional compensation for fiscal 2020 and has approved it again for fiscal 2021.her service on the Board of Directors.
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth compensation paid by the Company during the last two fiscal years to Gerald L. Salzman, who is the only executive officer of the Company.
Summary Compensation Table
Annual ExecutiveExecutive Compensation in Fiscal 2012020 9– – 20202021
Fiscal Year | Salary | Bonus | Non-Equity Incentive Plan Compensation(1) |
Total | Fiscal Year | Salary | Bonus | Non-Equity Incentive Plan Compensation(1) | Total | ||||||||||||||||||||||||||||
Gerald L. Salzman | 2020 | $ | 250,000 | $ | 400,000 | $ | 452,880 | $ | 1,102,880 | 2021 | $ | 250,000 | $ | 400,000 | $ | 703,000 | $ | 1,353,000 | |||||||||||||||||||
Chief Executive Officer, President, Chief Financial Officer, Chief Accounting Officer, Treasurer and Assistant Secretary | 2019 | 250,000 | 400,000 | --- | 650,000 | 2020 | 250,000 | 400,000 | 452,880 | 1,102,880 |
(1) | $ |
Executive Compensation Program
The compensation for Mr. Salzman consists of three elements: base salary, year-end bonus and participation in the Management Incentive Plan. Salary and bonus payments are primarily designed to reward current and past performance, while awards granted pursuant to the Management Incentive Plan are aimed at providing incentives for long-term future profitability of the Company. In determining the amount and form of compensation to be paid or awarded in 2020,2021, the compensation committeeBoard of Directors considered the Company’s overall performance over a period of years, rather than constructing a guideline or formula based on any particular performance measured in a single year. The compensation committeeBoard of Directors also recognized that Mr. Salzman serves in several executive capacities. Mr. Salzman has served as the Company’s chief executive officer, president, chief financial officer, chief accounting officer, treasurer and assistant secretary.
Mr. Salzman’s base salary remained $250,000, or the same as the amounts paid in each fiscal year since 1992. The compensation committee believes that the amounts of base salary (which will be continued at the same level for fiscal 2021) have been warranted by the Company’s financial performance, and by Mr. Salzman’s personal performance. While the compensation committee did not undertake a comparison of Mr. Salzman’s compensation to amounts paid by other companies to their chief executive officers, the committee members did utilize in their determination of Mr. Salzman’s compensation their collective current and past experience as directors and officers of numerous companies, and their subjective judgments about the performance of the Company and Mr. Salzman in light of the highly competitive market conditions in the publishing and case management software businesses.
Mr. Salzman’s bonus in each of fiscal 20202021 and 20192020 was $400,000. The non-equity incentive plan compensation column in the Summary Compensation Table above reflects a supplemental compensation payout of $703,000 in fiscal 2021 and $452,880 in fiscal 2020 and $0 in fiscal 2019 to Mr. Salzman under the Management Incentive Plan based on the Company’s earnings before taxes, workers’ compensation expenses, supplemental compensation expenses, realized and unrealized gains or losses on investments and any write-downs of unrealized losses on investments.non-business operating expenses associated with the Board matters.
The Company has no stock option plans, retirement plans, deferred compensation plans or traditional perquisites (other than health, insurancedental, vision and a life insurance policy,policies, which are offered to all full-time employees). It instead maintains the Management Incentive Plan, which is designed to link compensation to the performance of the Company by granting to Mr. Salzman and other participants a percentage of income before taxes and certain other items in the current year and each of the next nine years subsequent to the grant, provided they continue working for the Company or are retired (and not competing with any of the Company’s businesses) and have worked for the Company until age 65. If a participant dies while any of his or her certificates remain outstanding, future payments under those certificates will be made to the deceased participant’s beneficiaries. As of September 30, 2020,2021, the Management Incentive Plan had three different kinds of certificates entitling participants to a share of the Company’s earnings related to their core responsibilities. Participants who work in the Company’s traditional publishing business were eligible to receive “Daily Journal Non-Consolidated Certificates,” while those working for Journal Technologies, Inc. were eligible to receive “Journal Technologies Certificates.” Mr. Salzman and other participants with responsibilities for the entire business were eligible to receive “Daily Journal Consolidated Certificates.”Certificates”.
The compensation committeeBoard of Directors believes the Management Incentive Plan is preferable to a conventional stock option plan. As a mechanism for compensation, a stock option plan is capricious, as individuals awarded options in a particular year would ultimately receive too much or too little compensation for reasons unrelated to their performance. Such variations could cause undesirable effects, as participants receive different results for options awarded in different years. In addition, a conventional stock option plan would fail to properly weigh the disadvantage to shareholders through dilution. The Management Incentive Plan was implemented in combination with repurchases of the Company’s stock to reduce the dilution to earnings per share caused by grants under the Management Incentive Plan. At September 30, 2020, 135,0002021, 89,500 units for Daily Journal Non-Consolidated Certificates, 282370,000 units for Journal Technologies Certificates and 148,000221,000 units for Daily Journal Consolidated Certificates were outstanding under the Management Incentive Plan, while 424,307 shares of the Company’s common stock have been repurchased since the commencement of the Management Incentive Plan.
Certificates awarded to Mr. Salzman in earlier years of the Management Incentive Plan began to expire after fiscal 1999, and those certificates expiring in fiscal 20202021 were for 1.39%.55% of the pre-tax earnings of the Company after the last payout of $76,500 in fiscal 2020. These2021. The Board of Directors has determined that it will not replace the expired certificates in fiscal 2020 were replaced by the certificates of 1.39% granted in fiscal 2019. After considering the amount of the certificates previously grantedor grant new ones to Mr. Salzman, the compensation committee granted Mr. Salzman in fiscal 2020 a certificate that entitles him to receive 0.55% of the pre-tax earnings of2022, as the Company in 2021 and eachlooks forward to compensating its next generation of the next nine years, subject to the discretion of the committee to reduce that percentage prior to the first payout in 2021. This essentially replaces an identical award expiring in 2021 and maintainsleadership. Accordingly, Mr. Salman’sSalzman’s interest in the Company’s pre-tax earnings will decline to 7.6% in fiscal 2022 as compared to 8.2% in fiscal 2021. Additional units for .55% of pre-tax earnings will expire after a final payout at the Company at 8.2%.
The compensation committee will continue to examine the appropriate amountend of future grants to Mr. Salzman in light of the Company’s financial performancefiscal 2022, and the expiration, or expected expiration,Board of the certificates Mr. Salzman currently holds.Directors does not expect to replace those either.
Mr. Salzman does not have an employment contract with the Company, nor is he otherwise entitled to any sort of special payment in connection with his termination or a change in control of the Company.
Compensation of Directors
Messrs. Munger Guerin and Salzman didany directors who are Company employees do not receive any compensation for servingtheir service on the Company’s Board of Directors in fiscal 2020, and Messrs. Munger and Salzman are not expected toDirectors. Non-employee directors receive any such compensation in fiscal 2021. The other directors each received a yearly stipend of $5,000, in fiscal 2020. Each director servingwhich is pro-rated for allany partial year of fiscal 2021 is expected to receive the same amount in fiscal 2021, and Mr. Wilcox is expected to receive a pro-rated amount of $2,100.service.
The Company reimburses directors for travel and other expenses incident to service, but it provides no other compensation or perquisites. Non-employee director compensation for fiscal 20202021 is summarized in the following table:
Fiscal 20202021 Non-Employee Director Compensation
Name | Fees earned or paid in cash | All other compensation | Total | Fees earned or paid in cash | All other compensation | Total | ||||||||||||||||||
Charles T. Munger | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
J.P. Guerin | 0 | 0 | 0 | |||||||||||||||||||||
Peter D. Kaufman | 5,000 | 0 | 5,000 | 5,000 | 0 | 5,000 | ||||||||||||||||||
Gary L. Wilcox | 5,000 | 0 | 5,000 | |||||||||||||||||||||
Gary D. Wilcox (resigned in Feb. 2021) | 2,100 | 0 | 2,100 | |||||||||||||||||||||
Mary Conlin | 5,000 | 0 | 5,000 | 5,000 | 0 | 5,000 |
AUDIT COMMITTEE REPORT
The Company’s audit committee has reviewed and discussed the audited financial statements with the Company’s management and has discussed with the Company’s independent registered public accounting firm the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (the “PCAOB”) and the Securities and Exchange Commission, and by the Company’s audit committee charter. The audit committee has received written disclosures and the letter from the Company’s independent registered public accounting firm required by the applicable requirements of the PCAOB regarding the independent registered public accounting firm’s communications with the audit committee concerning independence and has discussed with the independent registered public accounting firm its independence.
Based on this review and these discussions, the audit committee recommended to the Board of Directors that the audited financial statements be included in the Company’s Annual Report on Form 10-K for the last fiscal year. Submitted by the members of the audit committee:committee who participated in the recommendation:
Charles T. Munger Peter D. Kaufman | |
Mary Conlin |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth as of December 31, 202023, 2021 the names and holdings of those persons known to the Company to be beneficial owners of more than 5% of its Common Stock, the holdings of each director and nominee for director, and the holdings of all directors and executive officers as a group. Each person has sole investment and voting power, except where indicated otherwise.
Amount Beneficially Owned | Percent of Class | |||||||||||||||
Beneficial Owner | Amount Beneficially Owned | Percent of Class | ||||||||||||||
RWWM Inc. | 264,102 (1) | 19.1 | 249,493 | (1) | 18.1 | |||||||||||
Peter D. Kaufman | 131,297 (2) | 9.5 | 131,297 | (2) | 9.5 | |||||||||||
Barbara L. Edmonds | 123,513 (3) | 8.9 | ||||||||||||||
BlackRock, Inc. | 73,375 (4) | 5.3 | 76,765 | (3) | 5.6 | |||||||||||
Charles T. Munger | 50,000 | 3.6 | 50,000 | 3.6 | ||||||||||||
Mary Conlin | 100 | - | 100 | - | ||||||||||||
Gerald L. Salzman | None | - | ||||||||||||||
Gary L. Wilcox | None | - | ||||||||||||||
All directors and executive officers as a group (five persons) | 181,397 | 13.1 | ||||||||||||||
John Frank | None | - | ||||||||||||||
Gerald Salzman | None | - | ||||||||||||||
Maryjoe Rodriguez | None | - | ||||||||||||||
All directors and executive officers | ||||||||||||||||
as a group (sixpersons) | 181,397 | 13.1 |
(1) | According to a Schedule 13G/A filed with the Securities and Exchange Commission on February 11, |
(2) | According to a Schedule 13D filed with the Securities and Exchange Commission on December 18, 2020, Peter D. Kaufman may be deemed to be the beneficial owner of 131,297 shares in his role as trustee of certain trusts that hold shares of Company Common Stock. According to the Schedule 13D, Mr. Kaufman’s address is 1211 Air Way, Glendale, California 91201. |
(3) | According to a Schedule |
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RATIFICATION OF APPOINTMENT OF THE COMPANY’SCOMPANY’S
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
(Item 2 on the Proxy Card)
The audit committee of the Board of Directors has selected Baker Tilly US, LLP (“Baker Tilly”) to serve as the Company’s independent registered public accounting firm for fiscal 2021. On November 1, 2020, the Company was notified that its former independent registered public accounting firm, Squar Milner, LLP (“Squar Milner”), was combined with Baker Tilly in a transaction pursuant to which certain of the professional staff and partners of Squar Milner jointed Baker Tilley either as employees or partners.2022. A representative of Baker Tilly is expected to be present at the Annual Meeting to make such statements as Baker Tilly may desire and to answer appropriate questions from shareholders.
Ratification of the appointment of Baker Tilly as the Company’s independent registered public accounting firm for the current fiscal year will require that the votes cast in favor of ratification exceed the votes cast against ratification. Abstentions have no effect on the outcome. Brokers and other nominees have the discretion under applicable rules to vote on the ratification of Baker Tilly when they have not received voting instructions from the beneficial owner on a timely basis.
If Baker Tilly’s appointment is not ratified, the audit committee will reconsider whether to retain Baker Tilly, but still may retain the firm. Even if the appointment is ratified, the audit committee, in its discretion, may change the appointment of the Company’s independent registered public accounting firm at any time during the year if it determines that such a change would be in the Company’s best interest.
Proxies given without instructions will be voted FOR ratification of Baker Tilly as the Company’sCompany’s independent accountants.
OTHER MATTERS REGARDING
THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Changes in the Company’s Certifying Accountant
On November 1, 2020, the Company was notified that Squar Milner, the Company’s prior independent registered public accounting firm, was combined with Baker Tilly in a transaction pursuant to which Squar Milner combined its operations with Baker Tilly and certain of the professional staff and partners of Squar Milner joined Baker Tilly either as employees or partners. On November 1, 2020, Squar Milner resigned as the auditors of the Company and with the approval of the audit committee, Baker Tilly was engaged as the Company’s independent registered public accounting firm.
Prior to engaging Baker Tilly, the Company did not consult with Baker Tilly regarding the application of accounting principles to a specific completed or contemplated transaction or regarding the type of audit opinions that might be rendered by Baker Tilly on the Company’s financial statements, and Baker Tilly did not provide any written or oral advice that was an important factor considered by the Company in reaching a decision as to any such accounting, auditing or financial reporting issue.
The report of Squar Milner regarding the Company’s financial statements for the fiscal years ended September 30, 2019 and 2018 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. Squar Milner also audited the Company’s internal control over financial reporting as of September 30, 2019, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013. In its opinion, the Company did not maintain effective internal control over financial reporting as of September 30, 2019, based on such criteria.
During the years ended September 30, 2019 and 2018, and during the interim period from the end of the most recently completed fiscal year through November 1, 2020, the date of resignation, there were no disagreements with Squar Milner on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Squar Milner would have caused it to make reference to such disagreement in its reports.
Audit Fees
Baker Tilly and Squar Milner billed aggregate fees of approximately $240,000$245,000 for professional services rendered for audits of the Company’s fiscal 20202021 financial statements, and for the three quarterly reviews of the financial statements included in the Company’s Forms 10-Q for fiscal 2020. Baker Tilly and Squar Milner (which merged into Baker Tilly) billed aggregate fees of approximately $258,000 for professional services rendered for audits of the Company’s fiscal 2019 financial statements and its internal control over financial reporting, and$240,000 for the three quarterly reviews of the financial statements includedsame services in the Company’s Forms 10-Q for fiscal 2019.2020.
Audit-Related Fees
“Audit-related fees” include fees billed for assurance and related services that are reasonably related to the performance of the audit and not included in the “audit fees” mentioned above. There were no such fees billed by Baker Tilly or Squar Milner in fiscal 20202021 and 2019.2020.
Tax Fees
There were no fees billed by Baker Tilly or Squar Milner in either fiscal 20202021 or 20192020 for tax compliance, tax advice or tax planning. The Company’s tax services are performed by a separate outside accounting firm.
All Other Fees
The “audit fees” mentioned above are the only fees billed by Baker Tilly and Squar Milner in fiscal 20202021 and 2019.2020.
Pre-Approval Policy
Pursuant to the rules and regulations of the Securities and Exchange Commission, before the Company’s independent registered public accounting firm is engaged to render audit or non-audit services, the engagement must be approved by the Company’s audit committee or entered into pursuant to a pre-approval policy. The audit committee has adopted a pre-approval policy, and it iswas attached as Appendix C to thisthe proxy statement.statement for the 2021 Annual Meeting of Shareholders.
The policy requires the audit committee to specifically pre-approve each service that the Company’s independent auditor provides to the Company (including audit services, tax services and other services), with the exception of certain audit-related services that do not impair the firm’s independence. Generally, pre-approval under the policy is provided for a period of 12 months and relates to a particular category or group of services. Pre-approval fee levels for all services are also established periodically by the audit committee. To ensure prompt handling of unexpected matters, the chair of the audit committee has been delegated authority under the policy to amend or modify any pre-approved non-audit services and fees, with any such action to be reported to the full committee at its next scheduled meeting. The audit committee does not delegate its responsibilities to pre-approve services performed by the independent auditor to management or to the Board generally. The policy also contains a list of non-audit services which the Company’s independent auditor is prohibited from providing if the results of those services would be subject to audit procedures during the audit of the Company’s financial statements.
The audit committee pre-approved all services provided by Baker Tilly and Squar Milner during fiscal 2020.2021.
DELINQUENT SECTION 16(a) REPORTS
Section 16(a) of the Exchange Act requires the Company’s directors and its executive officer and all persons who own more than 10% of a registered class of the Company’s equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission. The directors, executive officer and greater than 10% shareholders are required to furnish the Company with copies of all Section 16(a) forms they file. Based solely on a review of the copies of such forms received by the Company and written representations from certain reporting persons, the Company believes that during fiscal 20202021 all filing requirements were timely satisfied, except that Mary Conlin has not yet filed a Form 3 for the 100 shares of Company Common Stock that she may be deemed to beneficially own.satisfied.
OTHER MATTERS
Other Business
The Board of Directors does not know of any matter to be presented at the Annual Meeting which is not listed in the notice of Annual Meeting and discussed above. If other matters should come before the meeting, however, the persons named in the form of proxy will vote in accordance with their best judgment.
Cost of Solicitation
The solicitation of proxies for the Annual Meeting will be made primarily by mail. The Company may reimburse persons holding shares in their names as custodians, nominees, or fiduciaries for expenses they may incur in obtaining instructions from beneficial owners of such shares.
Proposals of Security Holders
It is expected that the Company’s 20222023 Annual Meeting will be held on or about February 16, 2022.15, 2023. Shareholders desiring to submit proposals for action at that meeting will be required to submit them to the Company on or before September 13, 2021.August 31, 2022. Any such shareholder proposal must also be proper in form and substance, as determined in accordance with the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.
Shareholders intending to present proposals from the floor of the 20222023 Annual Meeting in compliance with Rule 14a-4 promulgated under the Securities Exchange Act of 1934, must notify the Company of such intentions before November 27, 2021.14, 2022. After such date, the Company’s proxy in connection with the 20222023 Annual Meeting will confer discretionary authority on the Board to vote on any such proposals.
Annual Report to Shareholders
Enclosed with this Proxy Statement is the Annual Report of the Company for the year ended September 30, 2020.2021.
Additional Information
If any person who was a beneficial owner of Common Stock of the Company on the record date for the Annual Meeting of Shareholders desires additional information, a copy of the Company’sCompany’s Annual Report on Form 10-K will be furnished without charge upon receipt of a written request prior to the date of the Annual Meeting. The request should identify the person requesting the Report as a shareholder of the Corporation as of December 18, 2020.16, 2021. The exhibits of that Report will also be provided upon request and payment of copying charges. Requests should be directed to Mr. Gerald L. Salzman, Daily Journal Corporation, 915 E. 1st Street, Los Angeles, California 90012.
By Order of the Board of Directors |
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Michelle Stephens | |||
Secretary |
DATED: January 11,December 29, 2021
APPENDIX A
AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF
DAILY JOURNAL CORPORATION
CHARTER
I. PURPOSE
The primary function of the Audit Committee is to assist the Board of Directors (the “Board”) of Daily Journal Corporation (the “Corporation”) in fulfilling its oversight responsibilities by reviewing (i) the Corporation’s financial reports, (ii) the Corporation’s systems of internal controls regarding finance, accounting, legal compliance and ethics that the Board and management have established, and (iii) the Corporation’s auditing, accounting and financial reporting processes generally. Consistent with this function, the Audit Committee should encourage continuous improvement of, and should foster adherence to, the Corporation’s policies, procedures and practices at all levels. The Audit Committee’s primary duties and responsibilities are to:
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The Audit Committee will primarily fulfill these responsibilities by carrying out the activities enumerated in Section IV of this Charter.
II. COMPOSITION
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III. MEETINGS
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IV. RESPONSIBILITIES AND DUTIES
To fulfill its responsibilities and duties the Audit Committee shall:
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APPENDIX B
COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF
DAILY JOURNAL CORPORATION
CHARTER
I. PURPOSE
The Compensation Committee (the “Committee”) is appointed by the Board of Directors (the “Board”) to discharge the Board’s responsibilities relating to compensation of the Chief Executive Officer (the “CEO”) and other executive officers (collectively, including the CEO, the “Executive Officers”) of Daily Journal Corporation (the “Company”). The Committee has overall responsibility for approving and evaluating all compensation plans, policies and programs of the Company as they affect the Executive Officers.
II. COMPOSITION
The Committee shall consist of no fewer than three members. The members of the Committee shall meet the independence requirements of the NASDAQ Stock Market.
At least two members of the Committee also shall qualify as “outside” directors within the meaning of Internal Revenue Code Section 162(m) and as “non-employee” directors within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended.
The members of the Committee shall be appointed and may be replaced by the Board. The Board may also designate one of the Committee members as Committee Chairman.
III. MEETINGS
The Committee shall meet as often as necessary to carry out its responsibilities. The Committee Chairman shall preside at each meeting. In there is not a Committee Chairman or the Committee Chairman is not present at a meeting, the Committee members present at that meeting shall designate one of the members as the acting chair of such meeting.
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APPENDIX C
AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF
DAILY JOURNAL CORPORATION
PRE-APPROVAL POLICY
I. STATEMENT OF PRINCIPLES
The Audit Committee of the Board of Directors (the “Board”) of Daily Journal Corporation (the “Corporation”) is required to pre-approve the audit and non-audit services performed by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received pre-approval pursuant to this policy, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
The term of any pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will periodically review previously pre-approved services, based on subsequent determinations.
II. DELEGATION
To ensure prompt handling of unexpected matters, the Audit Committee delegates to the Chair of the Audit Committee the authority to amend or modify the list of pre-approved non-audit services and fees. The Chair will report action taken to the Audit Committee at its next scheduled meeting. The Audit Committee may also delegate pre-approval authority to one or more of its members who shall report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Audit Committee does not delegate its responsibilities to pre-approve services performed by the independent auditor to management or to the Board generally.
III. AUDIT SERVICES
The annual audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The independent auditor will provide the Audit Committee with an engagement letter and fee proposal outlining the scope and cost of the audit services proposed to be performed during the fiscal year. Once agreed to by the Audit Committee, the final engagement letter and fee proposal will be formally accepted. The Audit Committee will then approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Corporation structure or other matters.
The Audit Committee has granted pre-approval for other audit services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved (i) statutory audits or financial audits for subsidiaries or affiliates of the Corporation, (ii) services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters, consents, etc.), and assistance in responding to SEC comment letters, and (iii) consultations by the Corporation’s management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB or other regulatory or standard setting body (other than services that are “audit-related” services under SEC rules which have been separately pre-approved). Other audit services that reasonably could be performed by someone other than the independent auditor must be separately pre-approved by the Audit Committee.
IV. AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Corporation’s financial statements and that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of audit-related services does not impair the independence of the auditor, and has pre-approved audit-related services related to (i) internal control reviews and assistance with internal control reporting requirements, (ii) consultations by the Corporation’s management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB or other regulatory or standard setting body (other than services that are “audit” services under SEC rules which have been separately pre-approved), (iii) attest services not required by statute or regulation, and (iv) agreed-upon or expanded audit procedures relating to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters. All other audit-related services must be separately pre-approved by the Audit Committee.
V. TAX SERVICES
It is the preference of the Audit Committee for tax services such as tax compliance, tax planning and tax advice to be performed by an accountant other than the independent auditor. However, if the Audit Committee believes that the independent auditor can provide tax services to the Corporation without impairing the auditor’s independence, and the Audit Committee desires to retain the independent auditor for tax services, those services must be specifically pre-approved by the Audit Committee. In no event will the Audit Committee permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations.
VI. ALL OTHER SERVICES
The Audit Committee may grant pre-approval to those permissible non-audit services classified as “all other” services that it believes are routine and recurring services, and would not impair the independence of the auditor.
A list of the SEC’s prohibited non-audit services is attached to this policy as Exhibit 1. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these services and the applicability of exceptions to certain of the prohibitions.
VII. PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established periodically by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
VIII. SUPPORTING DOCUMENTATION
With respect to each proposed pre-approved service, the independent auditor will be required to provide detailed back-up documentation, which will be provided to the Audit Committee, regarding the specific services to be provided.
IX. PROCEDURES
Except for the annual audit services engagement (the procedures for which are set forth in Section III above), all requests or applications to provide services that require separate approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Chief Executive Officer, and must include a joint statement as to whether, in their view, the request or application is permissible under all legal requirements and consistent with the SEC’s rules on auditor independence.
EXHIBIT 1
PROHIBITED NON-AUDIT SERVICES
Bookkeeping or other services related to the accounting records or financial statements of the audit client*
Financial information systems design and implementation*
Appraisal or valuation services, fairness opinions or contribution-in-kind reports*
Actuarial services*
Internal audit outsourcing services*
Management functions
Human resources
Broker-dealer, investment adviser or investment banking services
Legal services
Expert services unrelated to the audit
* Provision of these non-audit services may be permitted if it is reasonable to conclude (without reference to materiality) that the results of these services will not be subject to audit procedures during the audit of the Corporation’s financial statements.
PROXY
DAILY JOURNAL CORPORATION
The undersigned hereby appoints Charles T. Munger and Gerald L. Salzman as proxyholders, each with the power to appoint his substitute; hereby authorizes them or any of them to represent and vote as designated below all the shares of common stock of Daily Journal Corporation held of record by the undersigned on December 18, 202016, 2021 at the Annual Meeting of Shareholders to be held on February 24, 202116, 2022 or any adjournment thereof; and hereby acknowledges receipt of the Notice of 2022 Annual Meeting of Shareholders and Proxy Statement, each dated January 11, 2021.Statement.
1. | Election of four Directors |
Charles T. Munger | ☐ FOR | ☐ AGAINST | ☐ ABSTAIN | |
Mary Conlin | ☐ FOR | ☐ AGAINST | ☐ ABSTAIN | |
John B. Frank | ☐ FOR | ☐ AGAINST | ☐ ABSTAIN | |
Maryjoe Rodriguez | ☐ FOR | ☐ AGAINST | ☐ ABSTAIN |
2. | Ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for fiscal |
☐ FOR ☐ AGAINST ☐ ABSTAIN
☐ FOR | ☐ AGAINST | ☐ ABSTAIN |
3. | In their discretion, the proxyholders are authorized to vote upon such other business as may properly come before the |
(Please sign and date the Proxy on the reverse side)
This Proxy when properly executed will be voted in the manner directed herein by the undersigned shareholder. If no direction is made, this Proxy will be voted FOR the election of each director and FOR proposal 2. 2. Unless otherwise specified, if cumulative voting is requested in any election of directors, the proxyholders or their substitute may cast an equal number of votes for each nominee for director or cumulate such votes and distribute them among the nominees at the discretion of such proxyholders.
This Proxy is solicited on behalf of the Board of Directors of Daily Journal Corporation.
Dated: ______________________________________ | |
Signature: ___________________________________ | |
Signature: ___________________________________ | |
Please sign exactly as name appears. When shares are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by | |
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. |