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Thursday, May 31, 2007

Motorola: Third Majority for “Say on Pay”
Submitted by: L. Reed Walton, Staff Writer

A proposal asking for an annual shareholder advisory vote on executive pay won 51.8 percent support at Motorola’s annual meeting, according to a May 30 company press release. The proposal, submitted by shareholder William Steiner, went to a vote on May 7.

The result marks the third time a “say on pay” proposal has received majority support this season, according to ISS data. A similar proposal at Verizon Communications won 50.2 percent of votes cast on May 3, and another resolution at Blockbuster on May 9 received 57 percent support, the highest result so far for “say on pay.”

The issue first appeared on company ballots in 2006, and averaged 40 percent support over seven meetings last year. “Say on pay” has fared slightly better this year, averaging 42 percent support at 22 meetings where results are known.

Four proposals are scheduled to appear on company ballots in early June, including Nabors Industries on June 5, Ingersoll-Rand on June 6, Affiliated Computer Services on June 7, and Countrywide Financial on June 13.

Lawmakers continue to weigh in on the “say on pay” issue. Democratic Sen. Barack Obama of Illinois--a presidential contender--has asked Sen. Christopher Dodd of Connecticut, the Democratic chairman of the Senate’s banking committee--who is also running for president--to hold hearings on his bill that would give shareholders at all public companies an annual advisory vote on the executive pay process.

Obama put forward the bill in late April as companion legislation to a similar bill by Rep. Barney Frank of Massachusetts, chair of the financial services committee in the House of Representatives. The House approved Frank’s bill on April 20.

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