According to Corien’s reaction on Kevin’s message, I wanted to know how America struggles with this kind of remuneration issue. Starting in 2011, the SEC (Securities and Exchange commission) will give the institutional investors a vote on the remuneration package of top executives at the U.S. corporations. But the vote is non-binding and the companies aren’t obligated to follow the results of the voting. Although these weaknesses, the new ‘say-on-pay’ law is expected to have a great impact on the relations between top executives and the shareholders. (Because of the embarrassment if a company ignores the wishes of their institutional investors .)
In addition of this new ‘say-on-pay’ law, the SEC made a controversial director election rule by giving shareholders the power to elect one or two director candidates onto corporate boards. This new rule provides the shareholders of more power in behind-the-scenes negotiations with top executives (for a normal pay package). I look forward to see the results of these new guidelines at the end of 2011.
Bram T'Hooft
( www.marketwatch.com/story/new-say-on-pay-law-could-temper-ceo-pay-2010-08-26 )
Geen opmerkingen:
Een reactie posten