A Chance to Veto a Ceo's Bonus Jason Zweig JANUARY 29 2010

A Chance to Veto a Ceo's Bonus Jason Zweig JANUARY 29 2010...

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THE WALL STREET JOURNAL THE INTELLIGENT INVESTOR Jason Zweig JANUARY 29, 2011 A Chance to Veto a CEO's Bonus Investors are getting more "say on pay." Before you start warming up your vocal cords, you should know a few things about using your new rights intelligently. Under rules adopted this week by the Securities and Exchange Commission, companies whose stock-market value exceeds $75 million must give shareholders the opportunity, at least once every three years, to voice their approval or disapproval of how top management is being paid. Shareholders have always been able to call for such a vote, but now it will be mandatory. The vote remains "advisory"; companies will be free to ignore the results. So you might conclude nothing is likely to change—and be tempted to feed your proxy statements directly into the paper shredder, as usual. New rules will allow shareholders to cast advisory votes on executive compensation. But proxy statements are still written in gibberish, and CEOs still call the shots. But your vote may discourage corporate boards from pampering managers with pushover pay hurdles; it might even end up making disclosures easier to understand. Ralph Walkling of the Center for Corporate Governance at Drexel University has found that
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A Chance to Veto a Ceo's Bonus Jason Zweig JANUARY 29 2010...

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