Executive pay has become an issue that increasingly dominates political discourse, corporate boardrooms and annual shareholder meetings.
Boards of directors say they pay executives for performance, tying benchmarks such as earnings to both short-term incentives (usually cash bonuses) and long-term incentives (like stock and option awards).
Shareholders don’t always buy it. About 3 percent of the Russell 3000 companies — an index that measures the performance of the largest 3,000 publicly held U.S. companies based on total market capitalization — failed to win approval of advisory “say on pay” votes both this year and last year, said Joe Kager, managing consultant at The Poe Group Inc. in Tampa. “The message shareholders are sending is there is misalignment of pay for performance,” Kager said.
Tampa Bay Business Journal
May 27, 2016, 6:00am EDT
Margie Manning and Chris Erickson
Read more here.
No comments:
Post a Comment