Financial Times FT.com

Pay package polls

Published: March 27 2008 09:34 | Last updated: March 27 2008 09:34

Had shareholders been able to vote on compensation plans at UnitedHealth, Home Depot or Gillette, would those companies’ former chief executives be living in smaller mansions? Perhaps. Support is growing for “say-on-pay” rules to give US shareholders a non-binding vote on the propriety of executive pay schemes.

Video rental chain Blockbuster, whose chief executive stepped down last year after a pay-related struggle with Carl Icahn, has just adopted a say-on-pay provision. Aflac and Verizon adopted similar plans last year. It is likely many US companies will agree to similar provisions unless Congress, which is already debating the issue, beats them to it by making such votes mandatory.

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