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The shareholders of the Phillips Petroleum Company have rejected a stockholder proposal to link executives' pay to increases in the company's market-capitalization ranking, compared with its rivals.
In the end, the frustration expressed over the lack of any prominent criminal prosecutions of bankers that captured the public's imagination like the case against Mr. Skilling may be less about the standard for proving a violation than finding proof to link executives to decisions that were clearly criminal.
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"You can imagine virtually all retail shareholders supporting resolutions that would limit or link executive pay to performance".
According to Ceres' report, 24% of companies now link executive compensation to sustainability performance, up from 15% in 2012.
One would separate the chief executive and chairman jobs, and the other would link executive pay to the rebuilding of the core business.
As always, incentives matter: the decision came shortly after shareholders voted to link executive compensation to how well Walmart stores are stocked.
Tim Ranzetta, president of Equilar, said, "Given the brouhaha surrounding the need to link executive pay and performance, it is surprising to see that almost 70percentt of C.E.O.
Only a third of the 613 companies' boards of directors formally oversee sustainability performance, while a quarter link executive compensation to sustainability performance.
Even worse, only 3% link executive compensation to voluntary sustainability performance targets – such as greenhouse emission reductions – that go beyond goals required for compliance with laws and regulations.
A spokesman for AstraZeneca said: "We believe the views of our remuneration committee and our shareholders are aligned... Our remuneration framework has been designed to link executive [pay] to our short, medium and long-term plans".
When it came to direct board involvement, the numbers plummeted: a mere 15% of boards agreed to train their members on corporate responsibility and only 9% agreed to link executive pay to sustainability performance.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com