Machinists Challenge Executive Compensation at UTC

The IAM is supporting a proposal calling for a shareholder vote on runaway executive compensation at United Technologies Corporation (UTC). The proposal, submitted by the AFL-CIO Reserve Fund, will be presented during the UTC annual shareholder meeting in Indianapolis, IN, and reflects deepening public concern about executive compensation practices.

“Year after year, corporate boards continue to approve enormous pay packages for executives, despite poor financial performance, shortsighted strategic decision-making and overt hostility to workers and local communities,” said Eastern Territory GVP Lynn Tucker, Jr. “In the wake of the worst financial crisis in decades, we need a way to control the outrageous excesses of myopic corporate executives.”

There is also increasing public support for reform to improve transparency and accountability of these executive pay programs. The AFL-CIO/IAM proposal calls for an advisory vote to establish an annual referendum process for shareholders of UTC on executive compensation for the top five highly-paid executive officers.

“The IAM is calling on UTC to adopt the resolution and provide shareholders a voice to express their opinions on executive pay by permitting an annual advisory vote,” said Tucker. “More than 25 companies, including Apple, Hewlett-Packard, Intel, Occidental Petroleum, Verizon and Microsoft have already agreed to such a vote. If adopted, this resolution would be an important step forward in enhancing board accountability.”