Fund firms swell execs’ pay, says study

AllianceBernstein, Barclays Global and AIM top the list in inflating executive paychecks, a study has found.
According to the American Federation of State County and Municipal Employees Group, New York-based AllianceBernstein made the top of the list, as it supported 94.8% of all management pay proposals and 31.1% of selected shareholder proposals.
Barclays of London followed close behind, giving the thumbs-up to 94.7% of execs’ proposals, while clearing only 33.8% of investors’ proposals.
AIM Investments of Houston, in the number three spot, stood behind 91.1% of management’s proposals and 35.7% of investors’.
The report, “Failed Fiduciaries: Mutual Fund Proxy Voting on CEO Compensation,” also found that New York-based TIAA-CREF, T. Rowe Price in Baltimore and Columbia Management in Boston were the fund managers most likely to vote for pay constraints: They voted for shareholder proposals at 72.6%, 77.1% and 70.8%, respectively.
On average, three out of four management proposals were supported by funds last year, while 46.5% of shareholder proposals relating to pay were supported.
This is the second time Washington-based AFSCME produced the report, in cooperation with corporate watchdogs The Corporate Library LLC in Portland, Maine and the newly-formed Shareowner Education Group.

Related Topics: Salaries/Comp Packages