New York City's pension funds want three big Wall Street banks to impose tougher compensation-clawback rules for top execs, according to Reuters.
NYC Pension Funds and City Comptroller John Liu called on the boards of Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co to strengthen language in top executives' compensation agreements. The funds held $483.3 million worth of stock in the three banks as of Monday.
In shareholder proposals, released on Wednesday, the pension funds proposed that the banks remove the word "material" from language in compensation contracts that require a "material" loss or reputational harm to have occurred before executives' pay can be reclaimed.
They also proposed that the banks be able to claw back supervisors' pay for the bad behavior of employees they manage, and that all clawback actions be disclosed to shareholders.
"No one should profit or be rewarded with bonuses when engaged in improper or unethical behavior," said Liu. "These tougher clawback provisions will not only recover money that shouldn't have been paid in the first place, but also set the tone for a stronger standard of conduct for company executives as well as their bosses…."
Find out more at http://www.reuters.com/article/2011/12/21/us-wallstreet-clawbacks-idUSTRE7BK16G20111221
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