Sonos Inc. shareholders back board, ratify KPMG as auditor

Sonos Inc . (NASDAQ:SONO), the household audio and video equipment manufacturer with a market capitalization of $1.34 billion, held its Annual Meeting of Stockholders on March 11, 2025, with significant outcomes including the election of board members and ratification of the company’s independent auditor. The meeting saw a high turnout with over 90% of eligible shares represented. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though its stock has experienced significant volatility, declining 22% year-to-date.

In a decisive vote, shareholders elected three Class I directors to the board for three-year terms. Karen Boone received the most support with 89,536,381 votes in favor, followed by Bracken Darrell with 91,632,187 votes. Joanna Coles garnered 57,789,062 votes. All directors will serve until their successors are elected or until their earlier resignation or removal.

The appointment of KPMG LLP as Sonos’ independent registered public accounting firm for the fiscal year ending September 27, 2025, was ratified with an overwhelming majority of 108,310,971 votes for and only 421,774 against.

Additionally, the shareholders approved, on an advisory basis, the compensation of the company’s named executive officers as described in the definitive proxy statement filed earlier this year. The say-on-pay vote, which advises on executive compensation, passed with 53,007,053 votes for and 41,871,423 against.

Reflecting on the views of its shareholders, Sonos announced plans to hold future advisory votes on executive compensation annually, a decision made after the advisory vote on the frequency of such votes showed a strong preference for the one-year option.

Further corporate governance matters were addressed with shareholders approving amendments to the company’s Restated Certificate of Incorporation and Restated Bylaws. These amendments align with Delaware law provisions allowing for the exculpation of officers and modernize the advance notice provisions. The bylaws were also amended to incorporate updates from the Delaware General Corporation Law and universal proxy rule.

These results, based on a press release statement, indicate shareholder confidence in Sonos’ current leadership and governance practices as the company continues to navigate the competitive landscape of the audio and video equipment industry. While currently showing negative earnings with a return on equity of -13%, InvestingPro analysis suggests a positive outlook, with analysts forecasting profitability in fiscal year 2025 and earnings per share of $0.57. For deeper insights into Sonos’s financial health and growth prospects, investors can access comprehensive Pro Research Reports, available exclusively on InvestingPro, covering over 1,400 US stocks including SONO.

In other recent news, Sonos has announced a significant company-wide reorganization, which includes a 12% reduction in its workforce. This move is part of an effort to improve the company’s operating model and cost structure, with anticipated restructuring charges estimated between $15 to $18 million. Additionally, Sonos has approved a new $150 million stock buyback plan, following the expiration of its previous $200 million program. The company has also decided to halt its plans for a video streaming player, known internally as ’Pinewood’, as interim CEO Tom Conrad reevaluates the company’s strategy.

In a further restructuring effort, Sonos has eliminated the Chief Product Officer position, with Maxime Bouvat-Merlin transitioning to an advisory role. Meanwhile, Rosenblatt Securities has reaffirmed its Buy rating on Sonos stock, citing a favorable risk/reward scenario and a positive outlook on the company’s future financial performance. The firm anticipates Sonos’ upcoming earnings report to meet expectations, with a cautious outlook for the following quarter. These developments come as Sonos navigates a challenging market environment and seeks to optimize its operations for long-term success.

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