DuPont shareholders reject say on pay
April 29, 2009
The Associated Press reports that DuPont Co. shareholders have narrowly rejected a proposal that would have given investors in the chemical manufacturing company a non-binding vote each year on executive pay. The proposal called for DuPont''s board of directors to adopt a policy allowing shareholders the opportunity at each annual meeting to vote on a resolution to ratify the compensation of named executive officers. The "say on pay" proposal, which was opposed by the company, was defeated at the annual meeting, with 53 percent of the votes cast against it and 46 percent in favor. DuPont chairman Chad Holliday, added that the company nevertheless disagreed with the proposal. Holliday retired as CEO in January. According an Associated Press analysis of DuPont''s regulatory filings, Holliday received compensation valued at more than $10 million last year. Ellen Kullman, who became DuPont president in October and took over as CEO in January, received total compensation last year valued at $3.37 million. In its official response to the shareholder proposal on executive pay, DuPont''s board said the proposed advisory vote could place the company at a competitive disadvantage in attracting and retaining executives. The board also said adopting an advisory vote could be premature and lead to conflicting obligations because lawmakers are considering action on the issue.