Turn to the nation's most objective and informative daily environmental news resource to learn how the United States and key players around the world are responding to the environmental...
June 20 — The push to give shareholders more of a say in corporate board elections may end up having an effect similar to “say-on-pay” provisions granting shareholders influence over executive compensation.
Energy companies are among those in which shareholders are asking for proxy access. Among other purposes, that access could be used to ensure that corporate board members have greater familiarity with climate change issues.
Proxy access, which typically allows investors that own 3 percent stakes for at least three years to name nominees to the board, is “fairly young,” Gregory Lau, a managing director at board and executive recruiting firm RSR Partners, said June 20.
But Lau said it could ultimately help improve the dialogue between investors and companies on issues such as director diversity and turnover rates, much like say-on-pay did for executive compensation.
“I think boards are on notice,” he said at a Skytop Strategies summit focused on environmental, social and governance issues in business and investment. “I think boards have listened to it.”
New York City's pension funds launched an unprecedented campaign for proxy access last year. Since then, more than 200 companies have enacted proxy access bylaws, including Exxon Mobil and its oil industry peers Chevron Corp., ConocoPhillips, Occidental Petroleum, Anadarko Petroleum and EOG Resources.
“I think it's going to prompt greater engagement,” Scott Zdrazil, who directs strategy and corporate engagement at the Office of the New York City Comptroller, said at the event.
“The market adopted say-on-pay a few years ago,” he said, “and I think the biggest result was that it significantly enhanced the discussion between investors and issuers around pay practices.”
Now, “we want to talk about the board,” Zdrazil said. “We want to talk about corporate strategy. We want to talk about how this board is the right board for that corporate strategy.”
To contact the reporter on this story: Andrea Vittorio in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Larry Pearl at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)