Union Activism Scores Big in the Boardroom: SEC Strengthens CEO Pay Rules

[Omaha Steve]

Full story: http://blog.aflcio.org/2006/07/28/union-activism-scores-big-in-the-boardroom-sec-strengthens-ceo-pay-rules/

Union Activism Scores Big in the Boardroom: SEC Strengthens CEO Pay Rules

Union activists and their allies scored a victory in corporate boardrooms across the nation this week, as Daniel Pedrotty from the AFL-CIO Office of Investment explains.

You raised your voices and brought about fundamental change in the boardroom. After record input, spurred in large part by comments sent through the AFL-CIO Executive PayWatch website—and some 23,000 through the AFL-CIO Working Families Network for activists—the U.S. Securities and Exchange Commission (SEC) updated rules governing CEO pay for the first time in 14 years.

The rules largely reflect the reforms called for by the AFL-CIO. Corporations must now report a single, catch-all number for executive pay, including CEO golden retirements, perks and stock options. After the federation called for reform in the face of the exploding stock option scandal, the SEC also moved to require better disclosure to prevent these abuses. Finally, the rules governing executive bonuses were strengthened to prevent companies from changing the rules in the middle of the game to ensure large payouts for CEOs.

All too often, CEOs are awarded pay for failure. According to The Washington Post, one recent study examined 60 companies that lost $769 billion over five years. Despite this track record, the top five executives at these companies pocketed a jaw-dropping $12 billion, or an average of $8 million per executive, per year. On average, the CEO of a Standard & Poor’s 500 company made $11.75 million in total compensation in 2005, according to a preliminary analysis by The Corporate Library.

Pfizer was ground zero in this year’s CEO pay wars. CEO Hank McKinnell soon will retire with an $83 million lump sum pension, even though the company’s stock has fallen 46 percent during his tenure. Earlier this year at the company’s annual shareholder meeting, an airplane circled the company’s annual meeting with a banner reading, “Give it back, Hank!” as union members handed out fliers, chanted and held signs to demand that McKinnell return half of his pension.

[AX10]

1. k&r

[xchrom]

2. k&r

i wissh we could get this kind of activism rolling against the conservative christian tv ''censors'' and ''morality police''.

[union_maid]

3. That is truly a sign of hope

If any progress at all can be made in this political climate, there might just be hope for the future after all.

[proud patriot]

4. Right On

:woohoo:

[LincolnMcGrath]

5. UNION THUG KICK!

[w4rma]

6. not funny. (nt)

[LincolnMcGrath]

7. What?

[oasis]

8. No sarcasm tag.

:sarcasm:

[LincolnMcGrath]

9. oh