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More to 2011 Proxy Season Than Just Say-on-Pay Votes

Melissa Klein Aguilar | March 1, 2011

Yep, proxy season is upon us again. Not surprisingly, shareholder votes on executive compensation will dominate this year's activism, but senior executives and board directors will still have plenty of other worries as well.

2011 is the first year that all publicly traded companies must give their shareholders say-on-pay votes (thank you, Dodd-Frank Act), and ask shareholders how often such votes should be held in the future. While the votes are non-binding, they are being watched closely as barometers of shareholder sentiment on executive pay.

Already, two companies—Beazer Homes and Jacobs Engineering—have received negative say-on-pay votes so far this year. Still, the votes may have a silver lining for directors.

Previously, investors unhappy with executive pay expressed their wrath by withholding votes for members of a board's compensation...

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