Risk & Compliance

Citi, EDS Reject Pay Proposals

At annual meetings, ''say on pay'' still receives only so-so support.
Stephen TaubApril 18, 2007

Shareholder proposals on executive compensation fell short on Tuesday at the annual meetings of Citigroup and EDS.

At Citi, a “say on pay” proposal by American Federation of State County and Municipal Employees received 43 percent support from voted shares, according to the Associated Press. The nonbinding measure would have allowed shareholders to approve the compensation of top executives.

A more narrowly targeted proposal — to cap the compensation of chief executive officer Charles Prince at no more than 100 times the average pay of Citigroup’s 325,000 employees — reportedly received only 25 percent support.

At EDS, shareholder activist John Chevedden had proposed that at least 75 percent of senior executives’ future equity compensation should be performance-based, and that the performance criteria should be disclosed to shareowners. The measure garnered only about 30 percent support, according to the wire service.

A nonbinding measure, which would allow shareholders controlling a total of between 10 percent and 25 percent of shares outstanding to call a special meeting, was approved at both companies, with nearly 60 percent support, the AP added.