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AT&T Shareholders Wont Have Say in Execs Earnings

Channel Partners

May 4, 2010

1 Min Read
AT&T Shareholders Wont Have Say in Execs Earnings

AT&T (T) shareholders have again rejected a proposal that they have a say in executive compensation.

Groups including the Association of BellTel Retirees had lobbied for passage of the measure. But, for the fourth consecutive year, the majority voted against the recommendation during AT&T’s annual shareholder meeting this week. However, unlike years past, the margins this time were razor-thin. A little more than 53 percent of shareholders voted against the idea, while nearly 47 percent voted for it.

Verizon Communications Inc. (VZ) stockholders will vote on a similar motion at their annual meeting on Thursday.

The “say on pay” issue has grown in importance over the past few years as executives receive millions of dollars in compensation, even if a company’s stock doesn’t perform well. Shareholders want to tie executive pay to share activity.

But most AT&T, Verizon, and even Frontier Communications (FTR) and Windstream Corp. (WIN), shareholders have so far dismissed the “say on pay” idea.

Shares of AT&T closed 1.45 percent lower on Tuesday at $25.90.

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