The two big items on the governance proposals front this year, according to The Corporate Library are, management proposals: the advisory vote on executive compensation (SOP), and the advisory vote on the frequency of the advisory vote (SWOP) So far, only two companies have received majority votes against approval of executive pay, those at Jacobs […]
Tag Archives | SOP
SWOP Reaches Tipping Point
James McRitchie, 03/27/2011 ,
The debate over the best frequency for “say on pay” votes has reached a tipping point, as a majority of S&P 500 and Russell 3000 firms have urged their investors to support annual advisory votes on executive compensation. As required by the Dodd-Frank Act, this year’s corporate proxy statements include a “say when” vote that […]
Controversy Among Corporate Secretaries
James McRitchie, 03/09/2011 ,
I’ve been getting some interesting comments in response to last week’s newsletter and I want to share them. Here are a few of the more interesting e-mails I’ve received. I’ve deleted the authors’ specific designations to safeguard their privacy: ‘You are missing a key fact. The recommendations to shareholders are not management’s recommendations as repeatedly […]
Just How Clever Are Directors on Pay Issue?
James McRitchie, 03/01/2011 ,
Interesting post from Dominic Jones, brilliant author of the IR Web Report, who wonders if directors fumbled, given that so many three year Say When on Pay proposals are being voted down. Or did directors intentionally channel investor anger “towards the less important of the two say-on-pay proposals.” Such a diversionary tactic gives “a window-dressing opportunity […]
Addressing CEO Pay
James McRitchie, 02/23/2011 ,
Regarding CEO pay, Nell Minow recently wrote, “there is a little flicker of light at the end of the long, dark tunnel of outrageous pay.” Her signs of hope: Required advisory “say on pay” (SOP) vote. Last year after a “no” vote, Occidental Petroleum’s board reduced the pay package for CEO Ray Irani and announced […]