Tuesday, April 07, 2009

Stock proxy season continues, so it's still worth pointing out: if you own stock, you should receive requests to vote your shares on topics that comes before the annual meeting of shareholders for each company.

If you're angry about executive pay, proxy votes can be a way to let the boards know. Consider voting against any CEO who is also chairperson of the board of the company. Why should the CEO get to be his/her own boss? Or, you can vote against the members of the board committee for compensation. Or, if you're lucky, there's an advisory vote on executive compensation. Even if it isn't perfectly worded, consider voting for it. It's only advisory, it probably will lose, but a meaningful increase in votes should send a message to the board.

Finally, don't forget: if you own shares, you have the right to submit a shareholder proposal. Better if you get a lawyer to help draft it, but even a basic advisory measure requesting shareholder approval of executive compensation will show the board that shareholders are actually watching. Remember, if you own shares of stock, you own part of that business. Are you watching what you own?

2 Comments:

Blogger Marta Montoliu said...

Didn't know you were such an active member of the blogsphere...
I like the name of your blog most of all :-)
Now seriously, are you thinking of any particular stocks when you wrote that...?

Marta

3:06 AM  
Blogger Mateu said...

Active? You are generous... ;-)

Well, CME published a typically convoluted proxy. JNJ is better, but like many companies, has no problem w/ the CEO also being chair of the board. As a rule, I withhold votes on any CEO that wants to be chairman of the board. Increasingly, I withhold votes on the board's compensation committee if the CEO compensation is absurd.

espero que ajudi,
Mateu

11:25 PM  

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