Blockbuster Gives Shareholders Say on Exec Pay25 Mar, 2008 By: Erik Gruenwedel
In a largely symbolic move, Blockbuster Inc. March 25 said its board has agreed to give shareholders a nonbinding vote on executive compensation starting in 2009.
The so-called “say on pay” initiative has gained traction over the years in response to public outcry over excessive compensation, perks and rewards given corporate executives during economic slowdowns and as their companies performed poorly.
The new policy, which was voted upon last year, will take effect at next year's annual shareholder's meeting. It allows stockholders to advise the board on compensation matters involving chairman and CEO Jim Keyes and CFO Thomas Casey.
Shareholders also voted to mandate annual elections for all board members.
“Holding this advisory vote on executive compensation on an annual basis will not only improve dialogue with our shareholder base, it will also provide our board with valuable feedback on our compensation policies, which currently link both bonus and equity compensation to Blockbuster's financial and operating performance,” said Keyes, in a statement.