Microsoft introduces shareholder 'say-on-pay' vote

Stephen Withers
Monday, 21 September 2009 04:16

IT Industry - Listed Tech

Microsoft will allow shareholders to vote on executive pay. The outcome will be advisory, not binding.

Shareholders in many companies have been calling for a voice on executive remuneration.

In some countries - such as the UK and Australia - they have a legal right to a non-binding vote, and something similar has been proposed for the US.

Meanwhile, some of the big names in the American tech sector are taking very different stances on the matter.

Earlier this year, Apple's board opposed a shareholder motion for such a vote brought by the AFSCME (American Federation of State, County and Municipal Employees) Employees Pension Plan.

HP has adopted what could be seen as delaying tactics on this matter, giving more than a year's notice that it will present a 'say-on-pay' proposal at its 2010 stockholders meeting. If accepted, a non-binding advisory vote would be part of annual meetings from 2011.

Now the Microsoft board has approved a shareholder advisory vote on executive compensation at this year's shareholder, which will be held on November 19.

The proposal is to allow shareholders a non-binding vote on executive compensation at three-year intervals.

Who was behind the move? See page 2.