American Express and Wells Fargo shareholders are being urged to vote against ratifying the companies’ executive compensation in non-binding proposals submitted by the $850 million AFSCME Employees Pension Plan, Washington, according to a statement from the retirement fund.
Both companies have a “misalignment between executive pay and performance. These firms’ poor pay practices have resulted in a growing proportion of guaranteed pay that has no tie to performance,” the American Federation of State, County and Municipal. Employees plan statement said.
“Outlandish, guaranteed executive salaries and bonuses that aren’t tied to performance are unacceptable,” Gerald W. McEntee, AFSCME president and chair of the AFSCME plan, said in the statement. “This kind of excessive, guaranteed executive compensation is outrageous.”
Management and the boards of both companies support the proposals.
The American Express annual meeting is April 26 and the Wells Fargo meeting is April 27.
