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For details of the survey conducted by the CFA Institute,*  see

* The CFA Institute is the professional certifying organization for members of its affiliated societies, the largest of which is the New York Society of Security Analysts ("NYSSA").  Peter F. Brennan, a member of the Forum's Advisory Panel, is chairman of the NYSSA's Committee for Corporate Governance.


Dow Jones Newswires, Aptil 2, 2007 article


The Wall Street Journal  

April 2, 2007 12:07 p.m. EDT


Most Investment Pros Support Shareholder Vote On Pay -Survey

April 2, 2007 12:07 p.m.

   By Kaja Whitehouse 

NEW YORK (Dow Jones)--A majority of investment professionals, including money managers and financial analysts, support giving shareholders an advisory vote on executive pay plans as long as it's not mandated through legislation, according to a new survey.

More than three-fourths of survey respondents, or 76%, said they support shareholders sponsoring proposals that would give investors a nonbinding vote on compensation packages. But 68% also said they oppose requiring this through legislation.

The survey was conducted by the standard-setting unit of the CFA Institute, a membership group for investment professionals, including financial analysts and mutual fund managers. More than 2,235 of the CFA Institute's members have responded since the survey period began March 13.

Advisory votes on pay are expected to be a big issue in 2007 as dozens of companies have been targeted with proposals this year, up from a handful when the idea was first tested in 2006. Further highlighting this issue, legislators have introduced a bill to formalize this tactic at public companies, and the measure was approved by the U.S. House Financial Services Committee last week.

Other investment groups have also come out in support of these proposals this year, including TIAA-CREF, which manages money for educational institutions, mutual fund firm T. Rowe Price Group Inc. (TROW) and investment firm Walden Asset Management. In February, Aflac Inc. (AFL) became the first company to announce adoption of this change, saying it will give investors a nonbinding vote starting in 2009.

The group launched the survey to test its members' support before deciding whether to officially recommending support for this measure in its book of official positions, said James Allen, senior policy analyst with the CFA Institute Centre for Financial Market Integrity, the unit that conducted the survey.

"It's something we noticed seems to work or has done some good in Britain and Australia," said Allen. "The hope is that corporate boards will be better able to tie rewards, stock compensation, as well as retirement, to performance."

-By Kaja Whitehouse, Dow Jones Newswires; 201-938-2243;

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