In the wake of the scandals of
the early 2000s, executive compensation has become an important corporate
governance issue among investors, Brian Rogers, chairman of the board and
chief investment officer at the T. Rowe Price Group Inc., said at the
Morningstar investment conference Friday.
An estimated 80% of the
time, T. Rowe votes with management on compensation issues, Mr. Rogers
That is not always the case
on the so-called “say on pay” proposals. “In my personal view, I tend not
to be supportive of [say on pay],” he said. Say on pay provisions allow
shareholders a non-binding vote on executive compensation.
The issue is better
addressed by going directly to members of a firm’s compensation committee
rather than through an advisory proposal, Mr. Rogers said.
Most of the time T. Rowe
votes in favor of directors and 100% of the time it vote for the process
of majority voting, he said.
The Baltimore-based fund
firm voted on approximately 3,400 proxies in the last proxy season alone.