TCF loses vote on executive pay
By Adam Belz, Star Tribune (Minneapolis) | |
McClatchy-Tribune Information Services |
In a nonbinding vote, 54 percent of the company's shareholders opposed its pay packages for top executives, including
"We respect the vote of our shareholders on this matter,"
The chance to say "yea" or "nay" to executive pay was given to shareholders by the Dodd-Frank Act in 2009. The vote is nonbinding, but corporate directors have become wary of the warning shot that can be fired when too many investors vote "no" to their pay packages.
A "no" vote is rare. Nationally, in 2013, only 81 out of 3,320 votes opposed executive pay, about 2 percent. So far in 2014, only four out of 389 boards have lost their vote, according to
TCF has had declining support for its executive compensation. In 2012, 76.2 percent of the shares were voted to approve the executive compensation program. Support fell in 2013, with only 61.4 percent of shares voted for the pay program.
"The impact on boards is actually more significant than the impact on pay itself, at least so far," Sale told the
Say-on-pay votes have given mutual funds, pension funds and insurance companies the chance to assert themselves when they feel the boss' pay has decoupled from the company's performance.
The TCF vote was the first no vote for a
Three
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Cooper's compensation included a
Staff writer
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