Microsoft grants shareholders a say on executives’ pay
19 Sep 2009
Anticipating a new law on 'say-on-pay' for public listed companies by the Congress, Microsoft yesterday granted shareholders a voice in executive compensation, key demand of some investors and politicians in the wake of the financial crisis.
The company's board of directors agreed to call for a non-binding advisory vote every three years approving or disapproving of the company's pay policies, Microsoft said in a regulatory filing yesterday.
The first such vote will come at the company's annual meeting on November 19, according to a preliminary proxy statement.
"Given the interest in executive pay, we think it makes sense to encourage more dialogue with our shareholders on our compensation approach," said Brad Smith, Microsoft general counsel.
Microsoft said it adopted the vote after discussions with shareholders, including Walden Asset Management, Calvert Investments and the United Brotherhood of Carpenters, which had submitted similar proposals for "say-on-pay" votes.
Though the votes will not be binding, if there is any ''significant negative say-on-pay vote,'' the board will "consult directly with shareholders to better understand the concerns that influenced the vote," the company said.
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