New Rule On Proxies Puts Heat On Firms
Certain big businesses that angered investors this year may find themselves under more pressure next year. The reason: Stockholders are gaining greater clout to elect corporate directors. On Wednesday, the Securities and Exchange Commission is expected to finalize a “proxy access” rule allowing large investors to nominate their own board candidates using companies’...
Read MoreGimme Back Your Paycheck
Should executives get to keep lavish pay packages when the profits that generated their compensation go up in smoke? With losses mounting at the nation’s largest financial institutions, years of earnings have been erased, investors have lost billions, thousands of employees have been let go, and taxpayers have been tapped to rescue the financial system. But executives who helped set the...
Read MoreFor Investors, Shaking Up Is Hard to Do
The Securities and Exchange Commission is trying to fix “proxy plumbing” to make it easier for shareholders to effect change inside companies. But confronting insiders, who are richer and better-informed than you, will probably remain a lonely, lopsided battle. Just ask Matthew Crouse of Salt Lake City. Starting in 2002, he sank roughly $190,000 into Cadus Corp., a classic...
Read MorePension Fiasco May Foment $1 Trillion Bailout
The Chicago Transit Authority retirement plan had a $1.5 billion hole in its stash of assets in 2007. At the height of a four-year bull market, it didn’t have enough cash on hand to pay its retirees through 2013, meaning it was underfunded to the tune of 62 percent. The CTA, which manages the second-largest public transit system in the U.S., had to hope for a huge contribution from the Illinois...
Read MoreCEO Compensation an Issue in Maryland
Jos. A. Bank Clothiers navigated a tough consumer market to gain in profit and stock price in the past fiscal year. The Hampstead retailer’s chief executive, R. Neal Black, also did well, taking home $2.6 million in pay, more than double his compensation in 2008. On the other end of the executive pay spectrum, A.L. “Tom” Giannopoulos, head of Columbia-based MICROS Systems Inc.,...
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