Stephen Withers
Monday, 19 January 2009 02:51
Opinion and Analysis
Page 1 of 2
HP will give its shareholders an opportunity to cast a non-binding vote on executive compensation. But they won't get a say until 2011.
Executive compensation can be a tricky subject, and there is growing feeling in many parts of the world that top managers' salaries have grown excessively during the good times that came to a crashing end last year.
Giving shareholders a chance to vote on the subject - even if the outcome is not binding on the board of directors - allows them to send a very specific message to the board.
HP will use its 2010 annual meeting to present stockholders with a proposal to introduce an annual non-binding advisory vote on executive compensation policies and procedures.
If approved, such a vote will be conducted at the 2011 and subsequent annual meetings.
"We have adopted this procedure because executive compensation involves important issues relating to corporate governance," said Mark Hurd, HP chairman and chief executive officer.
If it's that important, why the delay?
The company's 2009 meeting isn't until March 18, so why isn't this matter going on the agenda this year?
Then the first advisory vote could take place in 2010 rather than 2011.
What's happening elsewhere on this matter? Please
read on.
