Welcome to Lithia Motors' 2020 annual meeting. I now would like to turn the conference over to the company.
Good morning, everyone. I am Bryan DeBoer, President and CEO of Lithia Motors. On behalf of our Board of Directors, it is my pleasure to welcome you to the 2020 annual meeting of shareholders. We are happy to have you with us today for our first virtual shareholder meeting. I will now turn the call over to David Stork, our Chief Legal Officer, to conduct the official portion of this meeting.
Thank you, Bryan. Good morning. I call this meeting to order. It is now 8:30 A.M. Pacific Time on April 23, 2020, and I now declare the polls open for each matter to be voted on today. We will present the official business and vote on the agenda items first, then adjourn the annual meeting for a short presentation from management, followed by discussion and an opportunity to ask questions. During this meeting, you may submit questions and find the meeting materials in the online portal, including our rules of conduct and meeting agenda.
You will also be able to cast your vote through the online portal during the meeting prior to the closing of the polls. I would like to start by recognizing the members of our board and management team.
The nominees for director who are present on the call with us today are Susan Cain, Shauna McIntyre, Louis Miramontes, Ken Roberts, David Robino, Bryan DeBoer, who is also our President and CEO, and Sid DeBoer, who is also our founder and Chairman of the Board.
Some members of management of the company who are present on the call, in addition to myself, are Chris Holzshu, Chief Operating Officer, Scott Hillier, Senior Vice President, Operations, Tina Miller, Chief Financial Officer, Tom Dobry, Senior Vice President, Marketing, George Hines, Chief Technology and Innovation Officer, Mark DeBoer, Vice President, Real Estate, Jodi Rasor, Vice President, Operations Controller, Chuck Lietz, Vice President, Finance, Eric Pitt, Vice President, Treasury and Investor Relations, Edward Impert, General Counsel, and Kelly Porter, our Corporate Controller.
Also with us on the call today are Ryan Marquez, Aaron Frazier, and Lindsay Wickham from KPMG, our independent public accounting firm.
Chris Hall and Allison Handy from Perkins Coie are outside legal counsel. Tina Miller will serve as the Inspector of Elections today. Now that we have gone through our introductions, a few words regarding the mailing of notice and the presence of a quorum. A notice of meeting and internet availability was mailed on or about March 11, 2020, to all shareholders of record as of February 28, 2020. An affidavit to that effect has been received from Broadridge Financial Solutions and will be attached to the minutes of this meeting.
A supplemental notice to inform Lithia's shareholders of the virtual meeting was filed with the Securities and Exchange Commission and first made available to shareholders on or about April 3, 2020. A list of Lithia's shareholders of record as of February 28, 2020, is available for inspection during the entire time of the meeting on the online portal.
Based upon the shares represented in person or by proxy as reported by the Inspector of Elections, I can declare that a quorum is present and we can proceed with the meeting. Having established a quorum, in the interest of time, I would like to dispense with the reading of the minutes from last year's meeting. Copies of the minutes are available in the online portal if anyone wishes to read them. I would now like to proceed with the business of this year's meeting.
As set forth in the notice and the accompanying proxy statement, there are three matters to be voted upon by the shareholders. Proposal number one. The first matter is the election of a board of directors to serve until the next annual meeting of shareholders and until their successors are duly elected and qualified.
The board of directors has nominated and recommends the election of the seven nominees named in the proxy statement. We did not receive any other nominations. The nominees are Sidney B. DeBoer, Susan O. Cain, Bryan B. DeBoer, Shauna F. McIntyre, Louis P. Miramontes, Kenneth E. Roberts, and David J. Robino.
All nominees presently serve on the board. Proposal number two. The second item is an advisory vote on the compensation of our named executive officers as disclosed in our proxy statement. The results of the vote are not binding but will be considered by the compensation committee and the full board of directors when making future compensation decisions. The board recommends that shareholders vote for the advisory approval of the 2019 compensation of our named executive officers. Proposal number three.
The third item to be voted upon is the ratification of KPMG LLP as our independent registered public accounting firm for the year ending December 31, 2020. The board recommends that shareholders vote for the ratification. Now the call to vote. If you have provided your proxy card, your shares will be voted accordingly. So please do not vote through the online portal unless you want to change your proxy vote. If you have clicked the voting button on the online portal, please finish marking your choices and submit your votes. I now declare the polls closed. We will pause a few minutes while the Inspector of Elections tallies the votes. Now the results of the voting.
The Inspector of Elections reports that over 90% of shares of Class A common stock and all shares of Class B common stock are present and voting at this meeting in person or by proxy. The Inspector also reports that in regard to proposal number one, the seven nominees named in the proxy statement have been elected to the board of directors. In regard to proposal number two, the advisory votes are for the compensation of our named executive officers in 2019.
With regard to proposal number three, the ratification of KPMG as our independent registered public accounting firm for the year ending December 31, 2020, has been approved by the required vote. A formal report of the Inspector of Elections detailing the results of the vote on each proposal will be filed with the minutes of this meeting. This concludes the business to be conducted today.
The formal shareholders' meeting is officially adjourned. Bryan DeBoer, our President and CEO, will now proceed with the information portion of our presentation today.
Thank you, David. I'm saddened not to enjoy your company here in person today. We hope you and your families are safe and adjusting to the challenging events that have unfolded over the past few months. We would like to reflect on our past while looking forward to safer and more fun times ahead. In that spirit, I would like to share with you an interesting discovery that our tax team unearthed during an archaeological dig earlier this year.
At a building here in Medford that was preparing to undergo a remodel, they found our original hand-typed financial statement from 1946, the year we were founded. Check it out. Our company generated a whopping $50,000 in revenue, equal to about the price of a single nicely equipped Dodge pickup today.
Since 1946, our company has been driven by the qualities of optimism, persistence, adaptability, and a commitment to earn customers for life. Today, these qualities are reflected in our mission: growth powered by people and our values that define who we are and what we stand for. As a growth company, our teams remain focused on incrementally and profitably modernizing our industry by elevating consumer experiences through affordability, transparency, and convenience.
Our leaders are entrepreneurial, empowered, and driven to achieve high levels of performance and make decisions closest to our customers. These fundamental strengths provide the foundation to accelerate our progress towards our aspirational goal of 5% national vehicle market share. Today, we see our physical network comfortably taking us about halfway to our market share goal, with the second half being accomplished through new channels and brands that are powered by our growing digital home solutions.
Our physical network is currently just shy of 1% national market share and will be leveraged to achieve the second half of our journey. Our experiences over the past several years in our stores and with our business partners have taught us that experienced personnel, the right inventory, digital solutions, and a physical network all are required elements to profitably, affordably, and seamlessly deliver services to our customers.
Our physical network's proximity to our customers is a key element to our growth strategy as it enables us to supply convenient and affordable touchpoints throughout the ownership life cycle. As such, our top priority for capital allocation will continue to be acquiring strong new locations to improve the density of our network. Coupled with our digital home solutions, we will continue to pragmatically disrupt our industry.
Increasing our physical network to between 400 and 500 locations results in 2.5% market share and allows us to reach most U.S. consumers in two hours or less. This is necessary to be able to provide our highest margin service and associated parts offerings quickly and affordably to our consumers. Our investments in modernization are also well underway.
Through sharing of best practices, new digital solutions, and our consumers' recent confinement to their homes to support social distancing, these deliverables have taken hold at an accelerated pace in our network over the past few quarters. In closing, we will continue to deliver best-in-class results, and our diversified, high-growth business strategy will allow us to emerge from this pandemic stronger than ever. The discovery of our 1946 financial statement inspires reflection on our growth since then and how together we are making the unimaginable a reality.
Our entrepreneurial culture that attracts and retains the best talent, world-class proprietary performance management systems, a proven growth strategy, and a capital discipline with regenerating cash flows remains as our foundation. Since our inception, we have focused on what we can control to make our company, ourselves, and our communities extraordinary. Our team's multi-decade track record of executing together has positioned us to continue to lead and progress towards accomplishing our goal of 5% national market share. With that, I'd like to open up the call to questions.
Okay, gang. Being that we don't have any questions, we hope that each of you remain safe and healthy, and we look forward to visiting again in person next April. Thank you again for joining us. Have a good day.
The conference has now concluded. Thank you for joining today's presentation. You may now disconnect.