Navigating shareholder influence: Compensation plans and the shareholder approval process

Pamela Brandes, Maria Goranova, Steven Hall

Research output: Contribution to journalArticle

19 Scopus citations

Abstract

Corporate governance research emphasizes the influence of institutional owners on company outcomes such as strategic decisions, organizational structures, and executive compensation. However, little is known about the process companies use to gain support for management-sponsored compensation plan resolutions. This article reviews prior literature linking institutional ownership and compensation practices and investigates the little-studied process of how management tries to work with owners to secure shareholder approval of compensation plans. In addition, it provides brief cases of two Fortune 300 companies (General Mills and PepsiCo) that received positive votes on their compensation plans. The article ends with several recommendations for managers trying to gain institutional owners' approval of future compensation plans. Copyright by the Academy of Management; all rights reserved.

Original languageEnglish (US)
Pages (from-to)41-57
Number of pages17
JournalAcademy of Management Perspectives
Volume22
Issue number1
DOIs
StatePublished - Feb 2008

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Marketing

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