HP Shareholders Get Advisory Vote on Executive Pay

Lora Bentley

One of the reforms suggested in the fallout of the recession and the risky business behavior behind it was allowing corporate shareholders to have a say in how (and how much) company executives are compensated.

 

Wednesday, computer-maker Hewlett-Packard announced it is following several others in the tech industry and giving its shareholders an advisory vote on executive pay. SiliconValley.com reports:

Under a board-sponsored plan approved at the company's annual stockholders' meeting, Palo Alto-based HP will invite shareholders to vote in an annual referendum on the compensation awarded to CEO Mark Hurd and other top executives.

 

Board members will not be bound by the shareholders' wishes. (It is an "advisory" vote, after all.) However, the board is required to consider them when making compensation decisions.

 

Intel, Apple and Cisco Systems are a few of the companies that have adopted shareholder "say on pay" policies.



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