Mutual funds back firms on pay
Mutual funds continue to support the lion's share management-backed proposals that determine how top executives are paid, according to a new report.
Mutual funds continue to support the lion’s share management-backed proposals that determine how top executives are paid, according to a new report.
According to “Failed Fiduciaries,” put out by the American Federation of State, County and Municipal Employees, the nation’s 29 largest mutual-fund companies were in support of 75.8% of management-sponsored proposals for the 12 months ended June 2006.
That number increased slightly from favorable votes on 75.6% of such proposals in 2005.
Meanwhile, the average support for the pay-related shareholder proposals included in the study was 46.5%, according to the study, done in conjunction with The Corporate Library, a Portland, Maine-based researcher specializing in corporate governance.
AllianceBernstein Holding LP, Barclays Global Investors NA and AIM Investments supported 94.8%, 94.7% and 91.1% of management proposals, respectively.
On the bottom of the list, TIAA-CREF, T. Rowe Price Group Inc. and Columbia Management Group Inc. voted for 72.6%, 77.1% and 70.8% of such proposals, respectively.
Five fund families – Fidelity Investments, Putnam Investments, Legg Mason, Morgan Stanley and T. Rowe Price – decreased their management proposal support levels by more than 5% in 2006 from 2005.
Merrill Lynch was the only fund family to increase its support by more than 5% during that period.
American Federation of State, County and Municipal Employees is based in Washington.
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