• Proposals that ask companies to develop executive compensation criteria based on an executive’s accomplishment of non-financial goals, which include the improvement of:
− Environmental Issues
− Diversity Issues
− Treatment of Employees
− Corporate Social Responsibility Initiatives
• Proposals that encourage third-party evaluations of company reports and promote clarity, transparency and ease of access. These reports should be made publicly available, i.e. published on companies’ websites, and in annual reports.
• Proposals that encourage the creation of an independent compensation committee. To be “independent” according to the definition developed by Institutional Shareholder Services, a member must have no material connection to the company other than his/her respective seat on the committee.
• Proposals that companies apply their anti-discrimination policies to companies and organizations with which it is engaged in sponsorships and executive perks.
We do not support:
• Proposals that request that firms compare top executive pay with the lowest paid US workers. Typically, these proposals are vague and not specifically related to social issues as much as one of governance.