December 2, 2008
Some Thoughts on Fred’s “Say on Pay” Musings
– Pearl Meyer, Senior Managing Director, Steven Hall & Partners
I really love Fred Cook – and not just because he’s an icon – but rather because he’s tall, gray and handsome. And I absolutely agree that Say on Pay will be another costly blight on the community brought on by a few bad corporate actors and overzealous activists. It will serve only to further empower and enrich the proxy services who will now issue annual voting advisories on corporate executive pay, rather than when plans are up for approval every few years.
Fred’s suggestion is a reasoned one, but I would require a higher withhold of at least 20% on compensation committee chairs (who, of course, will be reluctant in the future to serve as targets in the catbird seat). If I had my druthers, I would also limit the vote to committed owners, as outlined in my earlier blog.
My suggestion was made after listening to Reps. Frank, Waxman, other politicos and advocates, such as Rich Ferlauto, note that mandatory Say-on-Pay legislation is inevitable. Like Fred, my purpose is to recommend a sane approach to any proposals put on the table. With best wishes for the Holiday Season and New Year!