In 2007, MMA co-filed a resolution on executive compensation at Cisco Systems. This Say-on-Pay resolution, if enacted, would have allowed shareholders an advisory vote each year on the compensation plan for top executives. The resolution received 48% of the vote – an unusually high percentage – but it did not translate into the establishment of an advisory vote for shareholders.

One of the points shareholders made to Cisco in support of the resolution is as follows:

“As faith-based shareholders, we believe that it is our responsibility to bring more visibility and accountability to the issue of executive compensation as practiced by companies in which we hold stock. We are concerned that an unchecked and growing concentration of wealth and privilege in corporate America does not promote the common good, economically, ecologically, socially, or politically.”

As socially-concerned shareholders looked to file the resolution again this year, Cisco offered an alternative five point plan that sought to address the concerns of shareholders while keeping the resolution off the company’s ballot. The main idea of Cisco’s plan was that its board of directors would study the issue over six months, allow proponents of Say-on-Pay to join in a discussion on the subject during the next board meeting, then announce its decision, for or against, along with its rationale.

After deliberation, shareholders decided to accept Cisco’s plan – with a few modifications – and proceeded to withdraw this year’s resolution.

This entry was posted on Tuesday, November 11th, 2008 at 11:45 am and is filed under MMA, Chris. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.