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Note: The referenced "say on pay" proposal for advisory voting was submitted by the AFSCME Employees Pension Plan, rather than jointly with retirees as reported in the article below.

For reports of the article's referenced vote on a similar proposal submitted to Verizon shareholders, see

For additional information about the Forum's project relating to the development of a model for advisory voting on executive compensation policies, see

Advisory Voting


New York Times, May 24, 2007 article


The New York Times

Executive Pay: Proxy Season

The New York Times spotlights the one season a year when shareholders can express their opinions on management.

Go to Special Section »

May 24, 2007

Qwest Holders Reject Proposals on Pay

DENVER, May 23 (AP) — Shareholders of Qwest Communications International have rejected three proposals that would have given them more influence in decisions about executive compensation.

At the company’s annual meeting on Tuesday, its chief executive, Richard C. Notebaert, was peppered with questions about salaries and bonuses, including his own, and cuts or caps in benefits for about 49,000 retirees across Qwest’s 14-state territory.

The defeated proposals, sponsored by retirees and the pension plan of the American Federation of State, County and Municipal Employees, included a “say on pay” measure that would have allowed a nonbinding shareholder vote on executive compensation packages. It was defeated 67 percent to 20 percent.

A second shareholder measure would have required the board to establish a policy that at least 75 percent of future equity compensation for senior executives be based on performance. It was defeated 82 percent to 17 percent.

The third proposal would have given shareholders the authority to approve supplemental executive retirement plans or some benefits under the company’s nonqualified pension plan. It was defeated 68 percent to 32 percent.

The pension plan, institutional investors and other retiree organizations have pushed the “say on pay” proposal at a number of companies this year. It has been approved by shareholders at some companies, including Verizon Communications, while it has been narrowly defeated at others.

Scott Adams, a spokesman for the pension plan, said after the meeting that the group would resubmit the proposal next year.


Copyright 2007 The New York Times Company




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