General Electric shareholders voted Tuesday against chief executive Larry Culpe’s বেতন 230 million salary package, and this year has seen a proliferation of investor activism rather than big bonuses in U.S. firms.
According to preliminary results, 57.57.7 per cent of the shareholders have rejected the industry company’s salary package for its executives.
Investors objected that Kalp’s pay plan was rewritten during last year’s epidemic in a way that made it easier for him to earn bonuses. GE’s board extended Kullp’s contract and doubled the amount of shares he would earn bonus shares and the amount of stock he would receive.
The stock market locked up as it roared towards the end of last year us 47m price bonus shares And the payoff could jump to a maximum of 0 230 million in early 2024 if he stays with the company.
Last year, GE executives ’salary-awards won 733 percent of shareholder support. After voting on Tuesday – which was advisory, not mandatory – GE said it was disappointed with the results and would continue to engage with shareholders on the pay-issue.
Adding investors to Angst at GE, Kalp said on Tuesday that the company would not increase its dividends in the near future. “We need to continue to make structural improvements to build a stronger GE before increasing dividends,” he said.
Average shareholder support for U.S. executive pay packages has fallen to its lowest level this year, according to pay-data agency Equilibrium. Five S&P 500 companies have now rejected their executive pay packages, including IBM and Starbucks, according to ISS Corporate Solutions.
Typically, investors pay an executive salary for a rubber stamp, with most plans having more than 90 percent support.
“I don’t think we’ve ever seen a situation where big and prominent companies fail this,” Matthew Tonlow, managing director of the International Conference Board, said in a vote. He said the rejection of pay packages is usually in mid-size or small companies, adding that the bonus votes of such large companies are “unprecedented” in failing.
More controversial votes are expected this month as shareholders share with Amazon, ExxonMobil and others.
The failure rate of payroll voting among Russell’s 3,000 organizations has doubled at this point in 2020, according to Cellar Bros., a pay-per-view consultation. The average support for pay is “much better than last year’s average,” the agency said in an April 29 report.
Equilibrium’s Courtney U said one of the main reasons companies are rejecting pay votes this year is to plan for rewriting during the epidemic to facilitate bonus earnings.
“We’re definitely going to see a steady trend of more companies getting less than 0 percent of the companies for this year.”