Financial Times (May 5)
“A wave of shareholder insurrection is going through the corporate world…. In the past three weeks, managers have faced rebellions against executive pay packages at UBS, Citigroup, Credit Suisse, Barclays, Xstrata, Aviva, Trinity Mirror, and Inmarsat…. This ‘shareholder spring’ has, like the Arab version, cost executives their jobs.” Shareowners are finally “waking up to the fact that ‘pay for performance’ too often translates into pay without the performance to match.” Non-binding “say on pay” votes are shaking things up, but “shareholders deserve more clout. Approval votes on executive pay should be made binding.”
“A wave of shareholder insurrection is going through the corporate world…. In the past three weeks, managers have faced rebellions against executive pay packages at UBS, Citigroup, Credit Suisse, Barclays, Xstrata, Aviva, Trinity Mirror, and Inmarsat…. This ‘shareholder spring’ has, like the Arab version, cost executives their jobs.” Shareowners are finally “waking up to the fact that ‘pay for performance’ too often translates into pay without the performance to match.” Non-binding “say on pay” votes are shaking things up, but “shareholders deserve more clout. Approval votes on executive pay should be made binding.”
Tags: Binding, Executive pay, Non binding, Say on pay, Shareowners
