Companies’ owners are slowly beginning to hold bosses to account, starting with closer scrutiny of their pay
THE nuns who are challenging Goldman Sachs’s claim to be doing “God’s work”, by bringing a shareholder resolution questioning the bank’s executive-pay policies, are but the tip of an iceberg. Thanks to a “say on pay” clause in last year’s Dodd-Frank financial-reform law, the pay of every senior executive of an American public company is now subject to a shareholder vote. So far in this spring’s corporate annual-meeting season, the management has lost such votes at four firms, the most prominent being Hewlett-Packard, a computing giant. Given the current mood of banker-bashing, it will be no surprise if there are similar results at Goldman Sachs and other financial institutions: all eyes will be on the first of the big banks to hold its vote, Citigroup, on April 21st.
See full Article.
Posts
