Here are the US companies criticized for too high salaries for top managers
The analysis of the consulting firm ISS Corporate Solutions in an article by Reuters
Investors have rejected a record number of executive compensation plans in non-binding votes of U.S. listed companies this year, objecting to salary increases and easing of performance targets in the wake of the COVID-19 pandemic, according to an analysis of the consulting firm ISS Corporate Solutions – reports Reuters
Some companies have argued that protecting executive salaries in a crisis is necessary to keep top managers incentivized, given the crucial role they play in leading their business. This idea has been increasingly met with skepticism by investors who say that shifting performance goals is unwarranted and demoralizes employees who are not equally protected.
A record 14 companies in the S&P 500 had more than 50% of investors turning down executive pay packages. This number is expected to rise as more executives face voting in the coming weeks, according to ISS Corporate Solutions. Investors voted against a total of 12 CEO compensation plans in 2020.
"We still have 200 or more meetings to do, and we will likely see more failures," said Brian Johnson, an executive director of ISS Corporate Solutions.
The record was hit last week when 53% of shareholders who invested in oil services company Halliburton Co (HAL.N) voted against CEO Jeff Miller's $ 22.3 million pay plan, which is approximately $ 10 million more than he earned in 2019.
Cruise ship operator Norwegian Cruise Line Holdings Ltd (NCLH.N) also faced a setback from its investors on executive compensation plans Thursday.
Investors this year also rejected executive compensation plans at industrial company General Electric Co, coffee retailer Starbucks Corp (SBUX.O), and chip maker Intel Corp (INTC.O).
Losing the shareholder vote can put pressure on works councils and executives to negotiate new wage deals. About two years ago, Walt Disney Co (DIS.N) renegotiated the compensation of its then CEO, Bob Iger, to tighten his performance targets after shareholders voted against his compensation.
About 10.6% of companies changed short-term incentive programs into compensation plans, and 3.3% adjusted long-term premiums, ISS Corporate Solutions found, bolstering executive compensation in many cases. .
Compensation plans from companies that underperformed financially, such as Phillips 66 (PSX.N) and Walgreens Boots Alliance Inc (WBA.O), were also rejected by investors.
ISS Corporate Solutions found that auto and auto parts manufacturers, real estate firms, and hardware and technology equipment companies changed pay more during the year than other industries.
(Extract from the Epr review)
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-le-aziende-usa-criticate-per-stipendi-troppo-alti-ai-top-manager/ on Sun, 06 Jun 2021 06:00:15 +0000.