Publication Date

3-2006

Abstract

[Excerpt] In this report, the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, and The Corporate Library (TCL) examine mutual fund proxy voting on executive compensation issues. Our purpose is to determine the extent to which mutual funds have exercised their responsibility to vote in their shareholders’ best interests on measures that would reasonably restrain executive compensation and link CEO pay more closely to company performance. Recent media coverage has increased public understanding about the outrageously high pay packages afforded to company executives, independent of their performance. To date, however, little attention has been paid to the worst enablers of this trend—the largest institutional investors, who possess a unique opportunity to exert influence over a board’s executive pay decisions through their formidable voting power.

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Suggested Citation
AFL-CIO, AFSCME, & The Corporate Library. (2006). Enablers of excess: Mutual funds & the overpaid American CEO [Electronic version]. Washington, DC: Authors.
http://digitalcommons.ilr.cornell.edu/laborunions/32/

Required Publisher Statement
Copyright by the AFL-CIO. Document posted with special permission by the copyright holder.



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