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The Mean Season
(MONEY Magazine) – After last year's corporate scandals, CEOs won't be surprised to find a record number of resolutions up for vote this proxy season. Institutional Shareholder Services' Patrick McGurn provides insight on the biggest proposals MOST LIKELY PROPOSAL Require the expensing of stock options, a rule that Congress dodged in Sarbanes-Oxley Act PROPOSED BY Connecticut Retirement Plans, Teamsters Union TARGET COMPANIES Apple, Gateway, Intel, Starbucks, Yahoo WILL IT FLY? Hottest issue; will pass if retail investors back institutional ones [PROPOSAL] Add performance-based pay incentives to executive-compensation programs [PROPOSED BY] Amalgamated Bank's LongView fund, Calpers [TARGET COMPANIES] Coca-Cola, GE, SBC, Siebel Systems [WILL IT FLY?] Will fly, especially at companies with poor compensation records [PROPOSAL] If severance payment is greater than three times manager's compensation, call for a vote [PROPOSED BY] AFL-CIO, retiree groups, LongView fund [TARGET COMPANIES] Citigroup, GE, Qwest, Verizon [WILL IT FLY?] Post-Enron anger should be fuel enough to help this item pass [PROPOSAL] Force companies to elect an independent director to the chairman's position [PROPOSED BY] AFL-CIO, GE retirees, LongView fund [TARGET COMPANIES] Boeing, Bristol-Myers Squibb, GE [WILL IT FLY?] Solid chance at Nasdaq firms; NYSE plans to impose its own policy [PROPOSAL] Companies should be allowed to employ auditors for auditing only, nothing else [PROPOSED BY] Church groups, SRI funds, TIAA-CREF [TARGET COMPANIES] EDS, Exxonmobil, GM, Verizon [WILL IT FLY?] Tyco's shareholders voted it down, which may set the tone for other votes LEAST LIKELY |
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