says exec pay resolutions at 44 companies
Friday, January 26, 2007
WASHINGTON, (Reuters) - Resolutions seeking more
shareholder say over executive pay are being filed at 44
major U.S. corporations in the 2007 proxy season by
institutional investors, a big labor union said on Thursday.
The American Federation of State, County and Municipal
Employees (AFSCME) said resolutions were being filed at
companies "where pay has been excessive or where there has
been a misalignment between pay and performance over the
past three to five years ..."
Target companies include Affiliated Computer Services Inc.,
Citigroup, Coca-Cola Co., Exxon Mobil Corp., Home Depot
Inc., Jones Apparel Group Inc., Merck & Co. Inc., Nabors
Industries Inc., Pfizer Inc., Qwest Communications
International Inc., Time Warner Inc., UnitedHealth Group
Inc., and Wal-Mart Stores Inc., the union said.
AFSCME said its employee pension plan and Walden Asset
Management organized the investors that include public
pension funds, labor funds, asset managers, foundations and
members of the Interfaith Center on Corporate
The resolutions would give shareholders an up-or-down
advisory vote on executive pay, the union said.
"We are focusing on companies where exorbitant pay has been
lavished on CEOs despite a failure to deliver results
commensurate with their compensation," said AFSCME President
Gerald McEntee in a statement.
"Far too often, the pay of CEOs is guaranteed regardless of
whether the company sinks or swims under their leadership.
It is time to give shareowners a way to express their
frustration with how boards are dealing with the
Similar resolutions were filed with a half-dozen companies
in 2006, AFSCME said.
Most of the resolutions filed this year will be voted upon
by shareholders during 2007 annual meetings, the union said.
AFSCME calls itself the largest union for workers in the
public service with 1.4 million members nationwide.