The International Association of Machinists and Aerospace Workers (IAM) is actively backing a proposal to give shareholders a say on executive compensation at United Technologies Corporation (UTC).
The proposal, submitted by the AFL-CIO Reserve Fund, will be voted on at the April 14 UTC shareholder meeting in Indianapolis, and reflects widespread concern that “outsized executive compensation packages fail to accurately reflect corporate performance or shareholder satisfaction.”
“Year after year, corporate boards approve enormous pay packages for executives, despite serious questions about the wisdom of their overall management,” said IAM District 26 business representative Everett Corey. “In the past year, UTC executives embarrassed shareholders, alienated workers and angered lawmakers when they threatened to outsource thousands of U.S. jobs to overseas locations.”
There also is increasing public support for improved transparency and accountability of executive pay programs. The AFL-CIO/IAM proposal calls for an advisory vote to establish an annual referendum process for UTC shareholders to vote on executive compensation for the top five paid executive officers.
“The IAM is calling on UTC to adopt the resolution and provide shareholders with a voice to express their opinions on runaway executive pay,” said Corey. “More than 25 companies, including Apple, Hewlett-Packard, Intel, Occidental Petroleum, Verizon and Microsoft have already agreed to such a vote. If adopted, this resolution would be an important step forward in enhancing board accountability.”
The IAM is among the largest industrial trade unions in North America, representing nearly 700,000 active and retired members in dozens of industries. For more information about the IAM, visit www.goiam.org.