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Shareholders Cut CEO Pay in Backlash |
May 21, 2012
Amidst a climate of populist outrage and corporate missteps, shareholders are voting en mass to cut executive pay thanks to a new government rule called "say on pay." The board of directors, who determine CEO pay, don't have to listen to the shareholder vote but most of are listening.
The CEO of Sprint Dan Hesse received a $3.25 million pay cut after shareholders expressed concern with a deal Hessee cut with Apple to carry the iPhone on the Sprint Network. The deal will cost Sprint $15.5 billion and the Sprint will reportedly not profit from the deal till 2015.
But are "say on pay" shareholder votes, while non-binding, a helpful feedback tool or do they encourage Monday morning quarterbacking?
http://feeds.abcnews.com/click.phdo?i=ea55b81b942118b50c4e2bb7dd73039b
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