Search
 

Failed Say-on-Pay Votes Spur Lawsuits

Litigation highlights need to communicate pay policy effectively. (Michael Melbinger of Winston Strawn.)

By Susan Kelly | Updated on September 30, 2011

Dodd-Frank required companies to give their shareholders a vote on the pay packages provided to top executives, but it characterized that as an advisory vote. Still, a number of companies whose say-on-pay resolutions failed to win majority support this year subsequently are facing compensation-related lawsuits from their investors.

Just 37 companies, or less than 2%, failed to win majority support on say-on-pay proposals this year, according to the Council of Institutional Investors. Investors filed lawsuits citing the say-on-pay vote against nine of those companies, including Cincinnati Bell, Dex One, Hercules Offshore, Janus Capital and Johnson & Johnson. The lawsuits target not only the companies, but also board members and executives.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.