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The new rules, which come into force in January, restrict bonuses to 100% of bankers' base salary, or up to 200% with explicit shareholder approval.
But the 10 commissioners did not back the EU plan to cap bankers' bonuses at one times their salaries, or twice with explicit shareholder support.
Calpers had blasted Shaw, a construction and engineering company in Baton Rouge, La., saying it had "some of the most egregious severance and change-of-control provisions ever," and urged fellow shareholders to cap severance packages at three times an employee's salary and bonus without explicit shareholder approval.
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Asked why he was explicit about shareholder value in managing his U.S.-listed affiliate yet low-key about it in the French parent company, the CEO of one multinational responded: "I drive differently in the U.S. than I do in France.
"I feel comfortable with letting each board decide this issue, as long as it makes its decision explicit to shareholders," said Nell Minow, a shareholder activist and co-founder of the Corporate Library, a research group in Washington that follows company boards.
First, they nearly all started by making an explicit commitment to shareholder value.
To do that, the CEOs of the most successful VBM practitioners have nearly always kicked off their programs by making public an explicit commitment to shareholder value.
The majority of VBM companies in our survey, however, seemed to shy away from making explicit commitments to shareholder value: 36% of participants described their commitment as implicit, expressed indirectly through their actions and decisions.
Carney is worried that restricting bonuses to 100% of salary (or 200% with the explicit backing of shareholders) could "tilt the structure" of pay deals in favour of short-termism.
Whereas a key part of FASB's mission is to serve the public interest, the EITF has no explicit duty to shareholders or the public.As far back as the late 1980s, the SEC asked the EITF to look at special-purpose entities, worried that they might lead a company to become overly leveraged without investors realising it.
Under the agreement, bonuses will be capped at a year's salary, but can rise to two years' pay if there is explicit approval from shareholders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com