The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Friday, October 14, 2011

Strategic CSR - Executive Compensation

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!!).