NYC comptroller calls for reforms
of exec pay
Thu Jan 15, 2009
NEW YORK, Jan 15 (Reuters) - New York City
Comptroller William Thompson on Thursday called for greater shareholder say
in compensation packages awarded to corporate executives, arguing that pay
should be more closely tied to performance.
"Investors increasingly are concerned about
mushrooming executive compensation, particularly when it is insufficiently
linked to performance," Thompson said in a statement.
On behalf of the New York City pension
funds which have a combined value of about $105 billion, Thompson submitted
resolutions for the shareholder meetings of nine companies.
Thompson submitted so-called "say on pay"
resolutions to Home Depot (HD.N),
Rite Aid Corp (RAD.N),
Ryland Group (RYL.N),
KB Home (KBH.N),
and Charming Shoppes (CHRS.O),
said the statement.
Thompson also submitted "pay for superior
performance" resolutions to Tenet Healthcare Corp (THC.N),
Chesapeake Corp, and Pier 1 Imports (PIR.N),
and a "performance-based stock options" resolution to shareholders of PMC-Sierra
This is the third time the New York City
pension funds have submitted a "say on pay" resolution for Home Depot. In
2007 and 2008, the same resolution garnered 43 percent and 42.1 percent
Last year 38.8 percent of PMC Sierra
shareholders voted in favor of basing stock options awards on performance.
"Stock options too often facilitate a
disconnect between reward and long-term performance at many companies,"
(Reporting by Tom Ryan; Editing by James
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