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Lynn Turner, former chief accountant of the Securities and Exchange
Commission, has given permission to present his response to the Forum's
distribution of a report that Intel
Corporation had adopted advisory voting for immediate testing in 2009.
Mr. Turner's observations are also relevant to the issues addressed in
Professor Gordon's draft paper. For a copy of that paper and
additional comments of Forum participants,
see
Note: Intel Corporation is a Leadership Supporter of the Forum's
current "Say on Pay" program and is represented
on the Program Panel by Cary I. Klafter, the company's Corporate Secretary
and Vice President of Legal and Corporate Affairs, referred to in Mr.
Turner's comments below. |
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Comments of
Lynn Turner
January 28, 2009
I too congratulated Cary [Klafter], Intel management and its board for
this decision. I would hope in light of the growing support among US
businesses, as well as for the benefit of investors, you and others will
throw their support behind it. As a former senior business executive who
had to grapple with compensation issues, and a trustee of two investment
funds, I believe this decision by people at Intel is the correct one.
I think this reflects well on the management and boards at these
businesses. I have always believed it is best when business leaders step
up to the plate and take actions such as HP, Occidental, Intel, Aflac,
Verizon and others have, before government regulation is made necessary.
However, when business leadership fails to adequately address a serious
problem, as executive compensation and performance have without question
become, then regulation is made necessary. It is now time to see if the
management of other businesses follow the leadership that has been
established, or if legislation and regulation will be necessary. The time
for that determination is upon us.
Best
Lynn
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