Support for a shareholder
advisory vote on executive compensation is losing steam in the financial
services sector, according to a report released today by The Corporate
Library of Portland, Me.
While shareholder support
for “say on pay” proposals is growing in general — to 42% this year from
41% in 2007 — the proposal lost support at eight banks and wirehouses that
voted on such initiatives in both years.
Those firms are Capital One
Financial Corp. of McLean, Va., Citigroup Inc. of New York, JPMorgan Chase
& Co. of New York, Merrill Lynch & Co. Inc. of New York, Morgan Stanley of
New York, U.S. Bancorp of Minneapolis, Wachovia Corp. of Charlotte, N.C.,
and Wells Fargo & Co. of San Francisco.
The average support for say
on pay proposals at those companies decreased 4.9% year-to-date.
A dip in the amount of
compensation for the chief executives of those companies may be a factor
in the decline, Damion Rallis, research associate and author of the
report, said in a statement.
“It is possible that these
facts have played a role in the decreased shareholder support for ‘say on
pay’ at these financial institutions,” he said.
The Corporate Library is an
independent research firm that tracks corporate governance and executive
Its database has information
on more than 3,200 companies.