Lucent Technologies Inc. shareholders today rejected by 80% a shareholder proposal urging the company's board to make senior managers' cash bonus or incentive compensation, other than stock options, contingent on the restoration of retiree benefits, according to a preliminary tally provided in a statement by the Murray Hill, N.J.-based company. However, shareholders voted 54% in favor of another proposal urging the board to base at least 75% of senior executives' future equity compensation, including stock options and restricted stock, on the company's stock performance under a criteria disclosed to shareowners, according to the tally.
Shareholders also voted 53% in favor of a proposal urging the board to exclude non-cash pension credit from earnings used to determine incentive compensation for executive officers, according to the tally. Pension credit comes from projected returns on pension fund assets.
"While two of the shareowner proposals ‘carried,' this does not mean they will be automatically enacted," according to the statement from Lucent. "The board will now give them due consideration and determine whether their implementation is in the best interests of shareholders."