Saks seeks to declassify its board

New York City Saks said Thursday its board of directors will seek shareholder approval to declassify the board, a move that will eventually put all directors' seats up for election to one-year terms at the same time.

Currently, directors are elected to staggered, three-year terms. If the proposal is approved, the seats of board members whose terms expire at each year's annual meeting will be elected for one-year terms. Beginning with the 2012 annual meeting, all director nominees will be elected for one-year terms.

The board also adopted a majority voting standard for the election of directors in uncontested elections.

CEO Steve Sadove said the moves "are in the best interest of the company and its shareholders."

Investor Peter Schoenfeld, chairman of P. Schoenfeld Asset Management, which owns about 2.9% of Saks shares, said in a statement he welcomed the proposal.

"Saks' shareholders voted overwhelmingly at the last annual meeting in favor of our proposal to declassify the board," he said. "We are pleased that the board is now responding constructively to the views of Saks' shareholders."