The following ran in the May 19, 2013, edition of the Pittsburgh Post-Gazette. Management professor Mel Fugate provided expertise for this story.
May 21, 2013
By Len Boselovic
Shareholder votes on executive pay mandated by the sweeping Dodd-Frank financial markets overhaul legislation enacted in 2010 are changing how public companies compensate their top executives.
Even though the votes are advisory and most companies pass the nonbinding tests with flying colors, more companies are listening to shareholder concerns over pay, as well as reaching out to large investors and the influential proxy advisory firms that provide guidance to shareholders on how to vote.
"Compensation committees and boards are definitely listening," said Southern Methodist University business professor Mel Fugate.
The pay referendums have put two perquisites that were on the decline even more out of favor: free use of the corporate jet and gross ups, which are reimbursements for taxes that executives pay on compensation....
Read more: Shareholder concerns over executive pay