January 12, 2017
Clawbacks: Investors Making a Difference
– Broc Romanek
In response to my outpouring of love for SunTrust Banks’ clawback policy, Meredith Miller – Chief Corporate Governance Officer of the UAW Retiree Medical Benefits Trust – reminded me that the impetus for SunTrust’s updated policy was a shareholder proposal submitted by the Trust and others that comprise an investor coalition on clawbacks. This coalition has been operating since 2013, starting with sending proposals to a group of Pharma Six – and then later, an expanded proposal that included disclosure of the use of the clawback which they have successfully achieved adoption at McKesson, Bank of America, JP Morgan, Allergan, Stryker and SunTrust. The coalition submitted this comment letter to the SEC on its clawback proposal back in 2015 that outlines the coalition’s efforts…
Also see this blog from myStockOptions.com about ExxonMobil’s fine clawback. And see this Willis Watson memo about how companies are adopting stronger clawbacks despite the SEC’s proposal not being adopted yet…