AFSCME Employees Pension Plan, Washington, called on shareholders to vote against the executive compensation at Alcoa and ConocoPhillips.
While Klaus Kleinfeld, Alcoa chairman and CEO, “earned more than $35 million from when he became CEO in May 2008 until 2010, Alcoa shares lost more than 60% of their value during this period” and underperformed peers, according to a statement by the $850 million American Federation of State, County and Municipal Employees fund.
“Although ConocoPhillips is smaller than all of the companies it selected for benchmarking CEO total compensation, its CEO pay is the second highest of the group,” consisting of Exxon Mobil, Royal Dutch Shell, BP and Chevron, the statement said.
The shareholder say-on-pay vote at the companies is non-binding.
In addition, shareholders were urged to support a proxy proposal the AFSCME fund sponsored at Alcoa, calling for the company to elect directors annually.
Alcoa recommends shareholders vote in favor of the executive compensation and against the AFSCME fund proposal, according to a company statement.
“The company’s corporate governance policies hold directors accountable to shareholders,” the Alcoa statement said. “Directors can only be elected by a majority of the votes cast by shareholders in an election. If shareholders wish to remove a director, they may do so for any reason or for no reason.”
Also, the AFSCME fund urges shareholders to support a proposal at ConocoPhillips, calling for disclosure of lobbying payments.
“A report on lobbying payments would help shareowners assess the risks and benefits associated with ConocoPhillips’ lobbying activities, including payments to trade associations used for direct lobbying and contributions,” the AFSCME fund statement said.
ConocoPhillips recommends shareholders vote in favor of the executive compensation and oppose the lobbying payment proposal, saying in a statement that it already discloses contributions to political candidates and payments attributable to lobbying activities.
The Alcoa annual meeting is May 6; ConocoPhillips, May 11.