Netflix shareholders voted overwhelmingly to overhaul the structure of the home entertainment company's board of directors, according to a filing with the Securities and Exchange Commission.
Netflix's board would be changed from its current "classified" structure, which allows members to serve different and overlapping term lengths. This arrangement strengthens the position of major shareholders in a company, because any outsiders hoping to gain control of a board may have to wait years for members' terms to expire.
In a vote taken at the Los Gatos, California company's annual meeting, shareholders approved the overhaul by a vote of 26.8 million to 8.98 million. More than 120,000 shareholders abstained.
A spokeswoman for the company did not immediately respond to request for comment.
Netflix has struggled to remain profitable in recent months as it faces rising content and shipping costs. The company's stock price has nose-dived as analysts have publicly fretted over Netflix's ability to grow its subscriber base enough to remain competitive. Shares of Netflix were down .26 percent in after hours trading to $64.83. A year ago, its stock was trading at nearly $100.
At the meeting, shareholders overwhelmingly approved the nomination of Chairman Richard Barton to remain on the board by a vote of 31.4 million to 4.5 million. Barton, the co-founder of the real estate site Zillow, has been a Netflix director since 2002.