The Shareholder ForumTM

reconsidering

"Say on Pay" Proposals

Forum Home Page

"Say on Pay" Home Page

Program Reference

 

For the press release reported below, with links to referenced shareholder proposals, see

 

Reuters, January 15, 2009 article

 

 

NYC comptroller calls for reforms of exec pay

Thu Jan 15, 2009 10:08am EST


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 Inc (PMCS.O).

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 support, respectively.

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," Thompson said.

(Reporting by Tom Ryan; Editing by James Dalgleish)

 

Thomson Reuters 2009 All rights reserved

 

 

 

This Forum program is open, free of charge, to anyone concerned with investor interests relating to shareholder advisory voting on executive compensation, referred to by activists as "Say on Pay." As stated in the posted Conditions of Participation, the Forum's purpose is to provide decision-makers with access to information and a free exchange of views on the issues presented in the program's Forum Summary. Each participant is expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

The organization of this Forum program was supported by Sibson Consulting to address issues relevant to broad public interests in marketplace practices, rather than investor decisions relating to only a single company. The Forum may therefore invite program support of several companies that can provide both expertise and examples of performance leadership relating to the issues being addressed.

Inquiries about this Forum program and requests to be included in its distribution list may be addressed to sop@shareholderforum.com.

The information provided to Forum participants is intended for their private reference, and permission has not been granted for the republishing of any copyrighted material. The material presented on this web site is the responsibility of Gary Lutin, as chairman of the Shareholder Forum.