James Hamilton reports that:
Armed with an advisory vote on executive compensation bestowed on them by the Dodd-Frank Act, shareholders now have an attention-getting way to signal their displeasure with a portfolio company’s compensation practices, said the Council of Institutional Investors in a white paper on executive compensation at financial institutions and securities firms. While calling a say-on-pay against vote a blunt instrument., the Council advised shareholders voting against compensation to explain their objections in a letter to the company.
I wonder how many, if any, members of the Council permit their beneficiaries to vote on the pay their executives receive. I don't recall ever being asked to give an advisory vote on the pay of the executives at TIAA-CREF or the UCRP. How about CalPERS? Why isn't sauce for the goose sauce for the gander?
