Cisco Shareholders Approve Say-On-Pay Proposal
By Roger Cheng, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Cisco Systems Inc. (CSCO) narrowly approved a "say-on-
pay" resolution giving shareholders more of a voice on executive compensation.
The San Jose networking titan is the latest company to get swept up by the
heightened levels of public scrutiny over pay among the highest ranks of the
corporate world. Goldman Sachs Group Inc. (GS) continues to take criticism for
its lucrative bonuses, and Apple Inc. (AAPL) and Microsoft Corp. (MSFT)
shareholders approved similar resolutions earlier this year.
The "say-on-pay" plan will allow shareholders to cast a non-binding vote on
the company's compensation of senior executives every three years.
The proposal was put forth by activist shareholder Christian Brothers
Investment Services on Thursday during the company's annual shareholder meeting.
The vote was initially declared too close to call, so the announcement was
delayed until Friday.
"This majority vote by Cisco's shareholders sends a clear message. The onus is
now on Cisco to take a leadership stance and enact Say on Pay before federal
legislation mandates such policies for all public corporations," said Julie
Tanner, assistant director of socially responsible investing at CBIS.
It's the second attempt by CBIS, which put forth the proposal two years ago,
but was narrowly defeated.
Cisco was not immediately available for comment.
Cisco shares rose 0.7% to $23.57.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com
(END) Dow Jones Newswires
11-13-091114ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|