Shareholders at Toll Brothers Inc., Horsham, Pa., were urged by RiskMetrics to withhold votes for the re-election of CEO Robert I. Toll as chairman of the board and to vote against a proposed CEO bonus plan.
Also, Laborers International Union of North America is leading a campaign to oppose Mr. Tolls re-election and the CEO bonus plan. In addition, the Corporate Library in a report noted the proposed bonus plan may ensure a bonus next year (for Mr. Toll) despite the severe downturn in the home-building industry.
Mr. Toll received a zero annual bonus for the first time in 16 years in fiscal 2007, prompting the Toll Brothers compensation committee to redesign the CEOs annual incentive plan, according to a Corporate Library statement about the report written by Paul Hodgson, senior research associate.
Terence M. OSullivan, LIUNA general president, said in a statement about the LIUNA campaign, At a time when Toll Brothers shareholders have seen a stock price decline of 50% over the last three years and 35% in just the last year, the people responsible for the companys decline need to be held accountable.
Toll Brothers said in a statement issued today: We believe that bonuses under the plan are directly linked to performance both company performance and individual performance and are entirely at risk if either the company and/or the CEO do not perform.
The companys annual meeting is March 12.