FILE PHOTO: FedEx CEO Fred Smith is photographed at the business roundtable of corporate leader and US Republican presidential candidate Mitt Romney on June 13, 2012 in Washington. Reuters/Jason Reed
September 27, 2021
NEW YORK (Reuters) – FedEx Corp’s investors approved billionaire CEO Fred Smith’s $54 million payout plan at the delivery company’s annual meeting on Monday, but lobbying rejected the board’s recommendation on a shareholder proposal for a bigger executive retirement package. rejected.
Investors are more than 50% binding on more disclosures about company lobbying and shareholders voting on severance pay for senior executives, who pay more than three times the salary and bonuses known as the “golden parachute”, Not approved by the proposal.
This year’s investor support is part of a major shift as top funds put more weight behind shareholder challenges on environmental, social and governance (ESG) issues.
Michael Price Jones, senior corporate governance analyst at the International Brotherhood of Teamsters, which sponsored the lobbying proposal, said: “Partial disclosure only raises questions. What are you hiding?”
FedEx did not immediately respond to a request for comment.
The Teamsters union, which is negotiating on behalf of FedEx employees at the freight facility, also urged investors to decline Smith’s pay. The union said their pay package amounted to “double dipping” as Smith received stock options instead of cash bonuses after the pandemic last year and was later awarded a cash bonus.
In a supplementary securities deposit this month, FedEx said the board’s compensation committee made “real-time decisions based on the best available information.”
The lobbying proposals require FedEx to produce annually updated reports on political spending at the local, state, and federal levels. FedEx said it supports businesses and regulatory measures that advance business goals.
The severance pay proposal presented by investor John Chebaden states that investors should be protected from paying Golden Parachute.
(Reporting by Jessica Dinapoli in New York, edited by Richard Chan)
FedEx Investor OK CEO Payments, Lobbying and “Golden Parachute” Proposal
Source Link FedEx Investor OK CEO Payments, Lobbying and the “Golden Parachute” Proposal