Qwest Shareholders Defeat
Say-On-Pay Proposal >Q
DOW JONES NEWSWIRES
May 23, 2007 12:45 p.m.
By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Qwest Communications
International Inc. (Q) shareholders on Wednesday handily voted down a
proposal that would've given them more influence over how top managers
are paid.
After a preliminary count, the Denver
telecommunications company said that only 20% of votes cast supported
the proposal.
The so-called "so-on-pay" measure has been a hot topic
at annual shareholder meetings. Fellow Bell Verizon Communications Inc.
(VZ) said Friday that its shareholders had approved a similar proposal.
The non-binding policy would've given shareholders an advisory vote on
executive compensation, although companies aren't required to implement
it.
A cadre of activist shareholders, institutional
investors, and state and union pension funds have pushed the measure to
a large number of companies. As a result, it's enjoyed surprisingly
rapid acceptance for a proposal not supported by management.
The American Federation of State, County, and Municipal
Employees proposed the measure to Qwest. It also had the backing the
Association of U.S. West Retirees, which represents more than 40,000
Qwest retirees and surviving spouses.
In addition, proxy-advisory firms Institutional
Shareholder Services and Glass Lewis & Co. supported the proposal, while
rival firm Proxy Governance sided with management's recommendation to
reject it.
Shareholders also defeated proposals to more closely
tie executive equity compensation to performance and separate the chief
executive and chairman roles.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020;
roger.cheng@dowjones.com
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