The article in the url below presents an enlightening perspective on reforms designed to allow shareholders to vote on executive compensation:
“Congress gave shareholders a new "say on pay" over executive compensation. And the returns are in: At 98.5% of companies, the answer was yes. Of 2532 companies reporting, shareholders at 39 of them rejected executive pay plans, according to Mark Borges, a principal at executive pay consultancy Compensia Inc. The tally, which includes Hewlett-Packard Co. and Stanley Black & Decker Inc., was roughly in line with expectations.”
The article makes an interesting comment on the value of shareholder/stakeholder involvement in active corporate governance. Either existing shareholders do not think there is a problem or sufficient numbers of shareholders that do think there is a problem are not engaging.
Either way, the result is not particularly encouraging (even though the votes are non-binding!!).
Have a good weekend
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A ‘Yes’ on Say on Pay
By Jessica Holzer
July 8, 2011
The Wall Street Journal