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Proxy advisers: Intermediaries spark change in pay practices

By Kristin Gribben

Published: June 17 2009 16:15 | Last updated: June 17 2009 16:15

US companies’ pay practices and board members that serve on compensation committees have been under particular scrutiny this year from proxy advisory firms.

These firms issue recommendations to investors on how to vote their proxies. RiskMetrics Group, the largest and most influential of the bunch, has broadened its list of what it considers poor pay practices, resulting in greater examination of companies’ pay plans and the re-election of directors who approved those plans.

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