BOSTON, May 30 /PRNewswire/ -- On June 5th at the annual stockholders meeting of UnitedHealth Group in Minnesota shareholders will vote for the second year on a shareowner proposal requesting an annual Advisory Vote on Executive Compensation.
The resolution received 42% last year.
Walden Asset Management, a Boston based investment firm focused on integrating environmental, social and governance factors into the investment process, is the primary filer of this resolution, which is co-sponsored by 5 other individuals and foundation investors, including the Tides Foundation and the Funding Exchange filing with 129,250 shares.
This resolution has been receiving exceedingly strong votes in 2008 by investors averaging in the 40% - 50% range with 6 companies with votes over 50%.
Investors seek to have an Advisory Vote on executive pay for several
-- They seek to provide feedback to the company on its' disclosure and
whether pay is adequately linked to performance.
-- They are concerned about spiraling executive pay.
-- Certain executive perks like country club memberships and payment of
income taxes for executives are of concern.
-- In the case of UnitedHealth Group, the backdated stock options scandal
by then CEO William McGuire, leading to "the largest executive-pay
giveback in history" (Wall Street Journal, December 7, 2007) of $620
million, raises the level of scrutiny for UnitedHealth Group.
-- Many investors feel they have no influence or power over executive
compensation packages even though it is the shareholder's money being
spent on executive compensation. The Advisory Vote is one important
way for investors to provide formal feedback on executive pay.
|SOURCE Walden Asset Management|
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