US union says exec pay resolutions at 44 companys

[Omaha Steve]

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-01-25T235003Z_01_N25302996_RTRIDST_0_PAY-AFSCME-UPDATE-1.XML&rpc=66&type=qcna

WASHINGTON, Jan 25 (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. (ACS.N: Quote, Profile , Research), Citigroup (C.N: Quote, Profile , Research), Coca-Cola Co. (KO.N: Quote, Profile , Research), Exxon Mobil Corp. (XOM.N: Quote, Profile , Research), Home Depot Inc. (HD.N: Quote, Profile , Research), Jones Apparel Group Inc. (JNY.N: Quote, Profile , Research), Merck & Co. Inc. (MRK.N: Quote, Profile , Research), Nabors Industries Inc. (NBR.N: Quote, Profile , Research), Pfizer Inc. (PFE.N: Quote, Profile , Research), Qwest Communications International Inc. (Q.N: Quote, Profile , Research), Time Warner Inc. (TWX.N: Quote, Profile , Research), UnitedHealth Group Inc. (UNH.N: Quote, Profile , Research), and Wal-Mart Stores Inc. (WMT.N: Quote, Profile , Research), 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 Responsibility.

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 compensation issue."

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.

© Reuters 2007. All Rights Reserved.

[havocmom]

1. A step in the right direction

Thanks, Omaha Steve. :thumbsup:

[Vidar]

2. Damned good move. Thanks for posting.