Now, in a story about that change..
Axios is highlighting the change in behavior on CEO pay.
Shareholders in companies are pushing back. Alliance Advisors issued a note that shows “unusually low support levels” pushing back against executive compensation without reasons or rationale.
53% of Walgreen’s shareholders voted against their payout plan earlier this year, and Wells Fargo investors support dropped.. although still enough to approve the pay. AT&T, Starbucks, and GE have also had pay proposals shot down.
Why do we care?
So this is the second half. If you want to see different behaviors, you change the incentive structures. The pushback is being examined after a year of a rough economy, business struggles, and displaced workers. It’s hard to justify paying massive pay packages in those conditions.
I’ll be interested to see if this change in behavior applies to tech. The companies discussed are not tech companies… and those same companies, despite a ton of backlash, are financially doing incredibly well. Those companies are not facing those same struggles.
Thus the interest is in watching this trend to see if accountability changes. And that’s why we care.