Trying To Bury The 'golden Coffin'

摘要

Wall Street bonuses may grab headlines, but activist shareholders are going after what they see as another kind of overcompensation: the "golden coffin." That's the irreverent name for payouts made to families of top executives if they die in office. Roughly 17% of megacap companies offer some form of this deal. So far, footnoted.org, which tracks SEC filings, says proposals opposing the practice are in the current proxies of Walt Disney, auto supplier Johnson Controls, and Shaw Group, which offers industrial services. Companies with the perk say it helps them attract and retain top-quality executives. But investors with labor ties, who are filing a total of 15 proposals against it, are unmoved. "This is pay for being dead," says Vineeta Anand, chief research analyst at the AFL-CIO's investment arm, which filed objections with Comcast and Charles Schwab. The Disney vote has yet to take place. The proposal aimed at Johnson Controls was defeated, with 42% of the vote. But the one filed at Shaw Group passed, with 67%. The issue "will be a serious consideration for our board," says a Shaw spokesperson. Says Carol Bowie, head of risk governance at analytics group RiskMetrics: "Golden coffins are bizarre in the context of the financial crisis. These proposals resonated with share -holders this year."