In a sure sign that shareholder “say on pay” proposals and other executive compensation issues will again be the big battlegrounds for the 2008 proxy season, the proxy advisory unit of RiskMetrics has updated several of its compensation-related policies—and, notably, adopted a set of five principles to explain when the influential firm will recommend “no” votes on pay packages.
“What we saw from 2007 leading to 2008 can be summed up in two words: accountability and engagement,” says Martha Carter, head of RiskMetrics’ global policy board. “We’re hearing from proponents that they’re not only able to get contact with the board and have discussions; they’re telling us those discussions are very productive.”
