The Advisors' Blog

– Liz Dunshee

Last year, I blogged that CalPERS would begin voting “against” compensation committee members in the same year that it votes against say-on-pay or compensation plans. That policy is now in effect, and the country’s largest public pension fund doesn’t appear to be letting up in its scrutiny of executive pay. This “Financial Planning” article says the fund has voted against 52% of pay plans so far this year, consistent with its voting record last year. In regards to the new policy, it reports:

The pension also voted against 2,716 directors who sit on compensation committees and are responsible for setting executive pay.

While the say-on-pay vote is merely advisory, votes against directors can be embarrassing and be fodder for activist investors seeking to argue that the company’s leadership is out of touch with shareholders.