I had promised not to write a COVID-incentive-target-adjustment-so-CEOs-make-out-big article every day, but here we are again. It’s not my fault if remuneration committees make pay decisions that bring down the wrath of shareholders on their heads. They really should know better.
Yesterday, just under 60% of shareholders voted against the Say on Pay vote – the advisory shareholder vote on executive pay – at US conglomerate General Electric (GE). It’s not the first Say on Pay defeat this proxy season and it won’t be the last.
It shouldn’t have come as much of a surprise. Both major US proxy advisors, Glass Lewis and ISS, recommended voting against it. There was also an exempt solicitation – a letter filed with the SEC that goes to all shareholders – full of withering criticism of the changes to CEO Lawrence Culp’s pay package from CtW