Frank Proposes Broad Exec Comp Disclosure
Mandates
November 11, 2005 (PLANSPONSOR.com) - A prominent US
House Democrat has waded into an always controversial topic
in corporate governance circles with a new bill mandating
additional executive compensation disclosure.
Representative
Barney Frank (D-Massachusetts), ranking Democrat on
the Financial Services Committee, proposed The Protection
Against Executive Compensation Abuse Act that would give
shareholders more information about management pay packages
and empower shareholders to take action against management
abuse and self-dealing, according to
a statement
on the committee’s Web site.
“We have witnessed a number of high profile
executive pay packages that are hidden to the owners of
the company, the shareholders, and I want to make sure we
have full disclosure,” said Frank, in the statement
“We are not taking anybody’s pay or even setting
any limits, we just believe these owners should know how
their employees (management) are being paid and have some
ability to do something about it if they so
desire.”
The bill would require that public companies
include in their annual report and accompanying proxy
solicitations a comprehensive Executive Compensation Plan
to be approved by shareholders that would
feature:
Full Disclosure of Top Executive’s
Compensation including
any and all types of compensation paid (or to be paid)
to top executives (such as pensions, golden parachute
agreements, personal use of private jets/company
apartments and other currently hidden
compensation),
Full Disclosure of Compensation Policies for
Top Executives including the short and long-term
performance measures or targets that will be used to
determine the top executive’s compensation (and
whether such measures were met in the preceding
year),
Company Policy for Recapturing Any Form of
Incentive Compensation That Subsequent Financial
Results Show Are Unjustified such as when the company
pays bonuses or grants stock options to executives
for meeting performance targets only to later learn
that these numbers were inaccurate and must be
restated.
According to data in Frank’s statement, the average
large-company CEO in 1991 received approximately 140
times the pay of an average worker. In 2003
the ratio was about 500 to 1.
SURVEY SAYS: Do You Offer Flu Vaccinations at Your
Workplace?
November 10, 2005 (PLANSPONSOR.com) - Between last
year's flu vaccine shortage and this year's bird flu pandemic
angst, flu concerns have certainly gotten a lot of press.
This week, we asked readers if they were sponsoring flu
vaccinations in their workplace - and if they would be
getting a shot.
A whopping
81.5%
of this week’s respondents are making flu vaccinations
available – some for free, some for a modest co-pay, some
are just providing the facilities and time off to get them.
“Did it, got it,”
one said.
However, one noted,
“Sponsored and already given 3 weeks ago.
And yes, I got my shot.
It cost 50% more that I’ve paid in the past, though.
Naturally!”
Ironically, however, only about half (
52%
) are planning to avail themselves of the benefit.
Among this group was the reader who said,
“We had our flu shots at work two weeks ago, and I was
one of the first on line (have to set a good example) as HR
Director.”
Another said,
“Even my husband (who never participates in anything
proactive when it comes to his health), has agreed to
receive a flu shot this year.”
We heard from a number of expectant parents this week,
including the reader who said,
“Yes, I will be getting a flu shot but not by choice. I
am due January 1st with my first child and my OB is
requiring both my husband and myself to get
“shot”. It was the first flu shot for both of
us.”
“Contrary to what some say, usually the male macho
type, flu shots are not for sissies.
It is really important for people who travel a lot but more
importantly, people should think of their families should
something happen to one of the parents that could be
prevented.
I am truly amazed that there are so many folks who tout
their ‘I’m not getting one of those, I don’t
need it”, like a Red Badge of Courage,”
cautioned one reader.
But that was a voice in the wilderness this week.
Among those who have the option but aren’t planning to act
on it were comments like the following:
“We are sponsoring vaccinations, but I will not be
getting one because I personally do not believe in their
effectiveness.
I only had the flu once in the last 10 years or so and it
was the one year that I actually received a shot.”
“Being a good employer, our office does support the
flu vaccination.
Not that I will ever get one!
The only people that I see getting a vaccination are the
ones who are sick all the time.
I have never had one, and I rarely ever get sick.
“Yes, our workplace is sponsoring free flu shots….
but they’ve scheduled them for Nov. 22 — two days
before Thanksgiving — when many of us (including me)
will be on vacation.
Makes you wonder if this is yet another cost cutting
measure.”
“My company sponsors flu shots, but I will NOT be
getting one.
Rotten eggs, live viruses and mercury – yuck!
The last time the flu swept through my office, those of
us who did not get the shot, did not get the flu.
During flu season I take lots of vitamin C, Echinacea,
and other herbs to support the immune system, wash my
hands often, and don’t allow anyone with a cold or
the flu to come near my office.
I haven’t had the flu or even a cold in several
years.
If sick people would quit coming to work and just stay
home, we could probably avoid any kind of flu epidemic.”
“We won’t be sponsoring flu shots this year
because fear of lawsuits. You never know if someone will
have an adverse reaction, or if a vaccine is not good, or
if a needle breaks off in someone’s arm leading to
“lost wages,” “medical bills” or
creating “psychological harm.”
You know what they say about good deeds and good
intentions.”
However, more than half of the firms that have, or are
still planning to offer flu vaccinations are suffering from
an unanticipated problem – a lack of vaccine.
“If I could, I would get the shot. I can’t find
anybody who still has the vaccine in the Metro Orlando
area!,”
said one.
“We had a flu vaccination clinic scheduled for this
Friday but it has been canceled because the clinic has not
received enough vaccine yet.
They keep telling us there’s no shortage, but it’s not
here yet.
We’re supposed to reschedule,”
noted another.
“We will be sponsoring a flu shot clinic and I do plan on
getting a shot, offered another.
“Since first setting up the clinic, we have already had
to delay it due to lack of vaccine.
What happened to the promises that this year there would be
plenty of flu shots for everyone?”
Another said,
“Unfortunately, we could not give them last year due to
the shortages of vaccine and this year is also looking
doubtful.
We are on a waiting list.”
But this week’s
Editor’s Choice
goes to the reader who noted,
“As popular as the free flu shots have always been, I
do recall a prior supervisor that commented “she
didn’t take the flu shot because getting the flu was
the only week of the year she could take off guilt
free”.
Thanks to everyone who participated in our
survey!