Company: WBD
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001437107-25-000078
Chunk: 100

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 100
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 by at least a majority of the directors then in office.

In addition, this Proposal Four proposes to eliminate certain inoperative provisions in our Current Certificate. Specifically, the Current Certificate provided for the Company’s stock reclassification (the “Stock Reclassification Provisions”) in connection with the combination of Discovery, Inc. and the WarnerMedia business (the “WarnerMedia Transaction”). The Third Restated Certificate no longer includes the Stock Reclassification Provisions because the reclassification was effected in connection with the completion of the WarnerMedia Transaction.

Our Current Certificate also contains certain provisions relating to the classified board structure (the “Classified Board Provisions”) of the Company. That structure will be fully sunsetting, and the Board will be fully declassified, as of the 2025 Annual Meeting pursuant to the terms of the Current Certificate. Accordingly, the Classified Board Provisions will no longer be operative, and the proposed amendments reflected in the Third Restated Certificate would therefore eliminate the Classified Board Provisions and replace them with provisions providing for uniform one-year terms for directors. Further, under the Current Certificate, directors could be removed only for cause; however, following the sunsetting of the classified board structure and the removal of the Classified Board Provisions, stockholders will have the ability to remove directors with or without cause, by a majority vote.

The Third Restated Certificate also reflects other customary provisions, including (i) that the Board is empowered to exercise all powers except those specifically prohibited by statute or the Third Restated Certificate, and (ii) that director elections need not be conducted by ballot unless required by the Bylaws.

Our Board regularly reviews its corporate governance practices in the context of market trends and stockholder perspectives, and recognizes that providing stockholders the ability to request special meetings is viewed by some stockholders as an important corporate governance practice. Following our 2024 Annual Meeting, the Board and the Nominating and Corporate Governance Committee ("Nominating Committee") acknowledged that the vote outcome on the stockholder proposal presented at the 2024 Annual Meeting requesting that we provide stockholders with the ability to call a special meeting represented a call to action. The Nominating Committee conducted an analysis of the prevalence of the right to call a special meeting at our immediate peer companies as well as at companies within the S&P 500 Index. The Nominating Committee also evaluated the proxy voting guidelines of our largest institutional investors to understand their disclosed perspectives. Based on this analysis, the Nominating Committee determined that proposing an amendment to our certificate of incorporation