Good morning, ladies and gentlemen, and welcome to Zoetis Inc.'s 2024 Annual Shareholders Meeting. I would like to introduce to you Mr. Mike McCallister, Chair of the Board of Zoetis Inc. Mr. McCallister, you may begin.
Good morning, and welcome to the 2024 Annual Shareholders Meeting. I'm Mike McCallister, Chair of the Board, and I'd like to thank you for your interest in our company and welcome you to our virtual shareholders meeting. At this time, I'd like to introduce the other board members who are participating in today's meeting. Kristin Peck, who serves as our Chief Executive Officer, Paul Bisaro, Vanessa Broadhurst, Frank D'Amelio, Gavin Hattersley, Sanjay Khosla, Dr. Antoinette Leatherberry, Gregory Norden, Louise Parent, Dr. Willie Reed, and Robert Scully. In addition, Roxanne Lagano, Executive Vice President, General Counsel, and Corporate Secretary, is also participating in today's meeting. Also present online today are representatives from KPMG, our independent auditors, and Catherine Blackwell, a representative from Carl T. Hagberg & Associates, who is serving as Inspector of Election.
All will be available to answer appropriate questions during the question and answer session of the meeting. It's now 8:00 A.M., and in accordance with the notice of the meeting, I'd like to call the 2024 Annual Shareholder Meeting to order. I'll be serving as the Chair of the meeting, and Roxanne Lagano will serve as Secretary of the meeting. Prior to the meeting, we provided each shareholder with copies of our annual report and our proxy statement, either by mail or online. Copies of these documents and the rules of conduct and agenda for the meeting are available on the meeting website. As a reminder, shareholders attending the virtual meeting will be able to vote their shares online while the polls are open, by logging into the meeting website as a shareholder and clicking the voting button on the meeting website.
If you have previously voted by proxy and do not wish to change your vote, your vote will be cast as you previously instructed, and no further action is required. Please note that if we experience technical difficulties during the meeting and are required to adjourn, we will promptly notify shareholders of the decision and relevant details via the meeting website. I'll now turn the meeting over to Roxanne to begin the formal matters to be discussed at this meeting.
Thank you, Mike. We are conducting this meeting in accordance with our bylaws and the meeting rules of conduct and procedures. The meeting rules and agenda are available on the meeting website. A list of shareholders on the record date has been made available for review at the company's corporate headquarters in Parsippany, New Jersey. We will begin by attending to the formal business of the meeting. After the formal meeting is adjourned, Kristin Peck, our Chief Executive Officer, will provide brief remarks. Following that, we will hold a question and answer session. Shareholders logged into the meeting website are able to submit questions by typing them into the text box on the meeting website through the end of the question and answer session.
This meeting is being held pursuant to the notice of annual meeting, since all shareholders of record as of the close of business on March 28, 2024. We have received an affidavit of mailing from Broadridge Financial Solutions, our proxy mailing service provider, indicating that notice of the meeting has been duly given. A copy of our proxy statement is available on our company's investor relations website and at the Securities and Exchange Commission's website at www.sec.gov. I declare that there is a quorum present. Accordingly, the meeting is duly constituted, and we may now proceed with the business of the meeting. The polls are open now for voting. We will close the polls after the proposals have been presented. There are five items of business to be voted on at this meeting.
The first item of business is the election to the board of directors of the 12 director nominees whose terms expire at this annual meeting, each to hold office for a 1-year term until the 2025 annual meeting of shareholders or until their respective successors are duly elected and qualified. The director nominees are Paul Bisaro, Vanessa Broadhurst, Frank D'Amelio, Gavin Hattersley, Sanjay Khosla, Dr. Antoinette Leatherberry, Mike McCallister, Greg Norden, Louise Parent, Kristin Peck, Dr. Willie Reed, and Robert Scully. As disclosed in the proxy statement, our board recommends a vote for the election of each of the director nominees. The second item of business is an advisory vote to approve the executive compensation of our named executive officers. As disclosed in the proxy statement, our board recommends a vote for the approval of the company's executive compensation.
The third item of business is the ratification of the appointment of KPMG as our independent registered public accounting firm for 2024. As disclosed in the proxy statement, our board recommends that you vote for the ratification of the appointment of KPMG. The fourth item of business is the approval of an amendment to our restated certificate of incorporation to provide for the exculpation of officers as permitted by the Delaware General Corporation Law. As disclosed in the proxy statement, our board recommends that you vote for the amendment to our restated certificate of incorporation to provide for the exculpation of officers as permitted by the Delaware General Corporation Law. The fifth item of business is a shareholder proposal regarding our director resignation policy, if properly presented at today's meeting. Mr. John Chevedden or his designated representative will present this proposal. Mr.
Chevedden's proposal and supporting argument is contained in the Proxy Statement and is deemed submitted. We understand Mr. John Chevedden or his designated representative wishes to make a brief statement in support of his proposal. Operator, please open the line.
This is, Glyn Beatty for John Chevedden. Can you hear me? Hello, can you hear me?
Yes, we can hear you.
Thank you. Proposal 5: Directors to be elected by majority vote improvement. Result: Adopt a corporate governance guideline, rule, or bylaw provision to state that a director who fails to obtain a majority vote in an uncontested election shall not be nominated by the board at the next annual shareholder meeting. When Zoetis shareholders give a director a no-confidence vote, it is important that the Zoetis board respect the vote of the Zoetis shareholders and not override such a shareholder no-confidence vote. This proposal could improve director performance because a failed vote would have more of a consequence. Currently, a failed vote can have no consequences because a director with a failed vote can remain on the board continuously for years into the future.
The board of directors would have plenty of time to prepare for a failed vote, because the board can see how the incoming votes trend. Plus, the board can take steps to turn around failed incoming votes. Under the current rules, the Zoetis board of directors could be the cheerleaders for a director who fails to get a majority vote from Zoetis shareholders and then keep such a failed director on the Zoetis board in spite of shareholder rejection. Under the current rules, a Zoetis director could be kept on the Zoetis board year after year of failed votes. The current rule is hardly the type of rule that would inspire Zoetis directors to excellent performance. Please vote yes, directors to be elected by a majority vote improvement, proposal five. Thank you.
Thank you. For the reasons stated in the Proxy Statement, our board has considered this proposal and recommends to vote against the proposal. Mike, back to you.
This concludes the presentation of the items of business that you've been asked to vote on at today's meeting. The polls are now closed. Roxanne?
All votes are subject to final count certified by the Inspector of Election. We will report the final vote results on a Form 8-K filed with the SEC within four business days from today's meeting. Mike?
Thanks, Roxanne. There being no further business to come before the meeting, the business portion of the 2024 annual meeting of shareholders of Zoetis, Inc. is now adjourned. Zoetis CEO Kristin Peck will now provide brief remarks, followed by a question-and-answer session. As a reminder, Kristin's remarks and answers provided during the question-and-answer session may contain forward-looking statements. Forward-looking statements are based on our current expectations, and actual results may differ materially due to risks and uncertainties as described in Zoetis' SEC filings, including its 10-K and 10-Qs. With that, let me turn the meeting over to Kristin.
Thank you, Mike, and good morning, everyone. It's a pleasure joining you today for our annual meeting of shareholders. As I reflect on 2023, our colleagues helped us deliver strong growth through game-changing innovation, commercial excellence, and supply chain improvements. The steady demand for our products resulted in operational revenue growth and operational adjusted net income growth of 7%, growing faster than the industry. Our diversity across markets, species, and therapeutic areas has sustained our performance, further demonstrating that animal health is a durable, essential, and growing industry, even in uncertain times. Building on our 10-year legacy since becoming a public company, we continue to answer critical, unmet medical need in veterinary medicine, which has firmly established us as the industry leader in animal health.
We perform well by living our purpose to nurture the world and humankind by advancing care for animals, and we are doing good work for animals, pet owners, veterinarians, and livestock producers. The combination of evolving pet owner demographics, younger and more affluent, and the powerful human-animal bond continue to fuel the demand for our innovative companion animal portfolio. Our commitment to science and industry-leading R&D investment has enabled us to create, create entirely new markets rather than just follow trends. Take, for example, the launch of Librela and Solensia. They are disrupting the traditional osteoarthritis pain management approach by offering long-lasting, safe, and injectable solutions in dogs and cats, alleviating chronic pain where too few effective options existed. In 2023, following three years of use in Europe, we received US approval for Librela.
We are pleased with the launch and the potential billion-dollar trajectory of our OA pain franchise. Our confidence is driven by our unwavering commitment to rigorous safety and quality standards, which has earned us the trust and preference of veterinarians worldwide. It warrants repeating: Librela is safe and effective. It is anchored in 10 years of science and has been used in real-world trials for 3 years, and our veterinary customers are very satisfied with its performance. Our dermatology portfolio is another clear example of how we create and grow new markets. A decade ago, we were first to recognize that new therapies were needed to treat canine itch safely and effectively. That foresight changed the treatment paradigm and revolutionized pet care. Our breakthroughs changed the market, and our performance is reflected in that opportunity.
This past year, we received approval in the U.S. for Apoquel Chewable. The first and only chewable formulation for the control of itch demonstrates our commitment to innovation and to pet owners who look for convenient, effective options. Our parasiticides portfolio remains a key growth driver, even in the face of competition. And in the European Union, Simparica Trio received approval for three new claims. This continued success highlights our strategic execution, label strength, and the efficacy of our products, and we continue to navigate uncertainty. We remain focused on building and delivering an innovative and targeted portfolio that addresses the evolving needs of customers. Our recent agreement with Phibro Animal Health to sell our medicated feed additive and certain water-soluble product portfolios and related assets is a strategic move that aligns with our disciplined capital allocation strategy, focusing investments where they have the greatest impact and growth potential.
We remain very committed to our livestock customers and to sharpening our focus on core livestock growth areas, including preventatives, antibiotic alternatives, and genetics. We continue to live our purpose, because our purpose is underpinned by our conviction that healthier animals build a healthier future for all. We report in more detail in our sustainability report this June. As we look ahead, science and innovation will catalyze our next decade of growth and ongoing creation of shareholder value, ensuring Zoetis remains the leader in animal health. We are committed to delivering the four tenets of our value proposition: to grow revenue faster than the market, to grow adjusted net income faster than revenue, to drive growth through investments in innovation, R&D, and business development, and to return excess capital to shareholders.
We reported outstanding first quarter 2024 results, which reflect a disciplined and adaptable strategy, and we are focused on driving strong performance through the remainder of the year. Our confidence is rooted in two global and enduring trends: the powerful human-animal bond and people's willingness to pay for high-quality animal health care, and the demand for a secure and sustainable food supply to feed the 10 billion people expected by 2050. Lastly, I would be remiss if I did not acknowledge and thank Dr. Linda Rhodes for her dedicated service. She has been an agent of change across the industry and has served our board well. I'm incredibly proud of all we've achieved in a year filled with both challenges and opportunities, and I want to thank you for your continued interest and investment in Zoetis.
Now, I will hand things back to Mike and look forward to addressing any of your questions.
Thank you, Kristin. I will now open the meeting to any questions.
We have no shareholder questions.
As there are no questions at this time, we will conclude the 2024 Zoetis Annual Shareholder Meeting. Thank you for your participation.
You may now disconnect. Have a good day!