Agreement Data Specialists, from left, Gail Carpenter, Karen Fox and Rosemary Barksdale.

Strategic Resources — 3

Year by Year Highlights of IAM’s Shareholder Initiatives

2001

An IAM member at Pratt & Whitney sponsored a shareholder proposal at United Technologies Corporation to change how the company rewards its top executives. The shareholder proposal sought to incorporate human capital factors such as employee satisfaction, morale, and training to measures used to award executive performance pay. The proposal, while receiving mild support from shareholders overall, mobilized IAM members around this corporate governance issue.

2002

United Technologies Corporation
For the second consecutive year, an IAM member submitted a shareholder resolution to incorporate human capital factors such as employee satisfaction, morale, and training to measures used to award executive performance pay. The proposal, while receiving mild support from shareholders in both years, mobilized our members around this corporate governance issue.

Lockheed Martin Corporation
With the AFL-CIO, the IAM ran a “Vote No” campaign on Enron Director Frank Savage’s re-nomination to Lockheed’s Board of Directors. The campaign’s focus was to persuade shareholders to withhold their votes on Savage’s re-election as a Lockheed Director. The resulting 28 percent of votes withheld from Savage was an all-time high vote against a director of a major U.S. Corporation.

The Boeing Company
An IAM member submitted a resolution for shareholder approval asking Boeing to incorporate human capital factors in measures used to award executive performance pay

UAL Corporation
Two IAM members each submitted a shareholder proposal to be voted on at UAL Corp.’s annual shareholders’ meeting.

Link Executive Pay to Rebuilding the Company’s Core Business: This resolution sought to link executive performance pay to rebuilding the Company’s core air transportation business.

Separate the Chairman and CEO Positions: This proposal aimed to separate the CEO and Chairman positions and, therefore, creating an independent Chair position on the UAL Board of Directors.

Both resolutions were supported by a majority of the shareholder vote.

Stanley Works
Working closely with the AFL-CIO and the State of Connecticut’s Treasurer and Attorney General, Strategic Resources assisted in a multi-pronged effort to block the company’s reincorporation to an offshore tax haven that included street demonstrations, legislative pressure and heavy lobbying in the investment community. An IAM lawsuit charging Stanley with violating employee ERISA protections brought additional heat on the company.

The company was placed at the center of the national debate over tax-dodging corporate inversions, the practice by which a company sets up a shell headquarters in an offshore tax haven to evade taxes on profits made overseas. Stanley’s tax cut would have amounted to nearly $30 million annually.

As a result of the campaign, Stanley Works dropped its plan to reincorporate in Bermuda.

2003

United Technologies Corporation and Raytheon Co.
The IAM supported two shareholder proposals sponsored by the AFL-CIO at United Technologies and Raytheon, both seeking shareholder approval of any executive severance packages. These executive packages are excessive and this proposal seeks a shareholder vote to approve any future executive severance package. Both proposals were supported by a majority of shareholders. At Raytheon, IAM reps presented this proposal at the shareholders’ meeting and made comments in support of it.

Lockheed Martin Corporation
At Lockheed Martin, we opposed the nomination of Enron director Frank Savage to the Lockheed Board of Directors for the second consecutive year because of his lack of oversight responsibilities at Enron. The vote against Savage at Lockheed’s annual stockholders meeting reached our previous year’s all-time high for a vote in opposition of a director nominee at a U.S. corporation.

The Boeing Company
An IAM member brought a resolution to the company’s annual shareholder meeting to spur a vote allowing shareholders to demonstrate their disapproval of excessive supplemental retirement plans offered to Boeing’s senior executives, such as the supplemental plan that is currently available to executives. The resolution was supported by 15% of the vote, a decent level of support for a new issue to shareholders.

Maytag
At Maytag’s annual shareholder’s meeting, Machinists captured the central theme of the meeting by presenting resolutions, making comments and questioning the company’s decision to close the Galesburg, IL, facility and the resulting movement of production to Mexico.

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