Category Shareholder Approval

I’ve been working on a research report that analyzes the voting trends on equity compensation plan proposals during 2007-2009 with Reid Pearson of The Altman Group, and discovered something interesting. The equity plan proposal failures seem to be concentrated in just a few industry groups. Here are the top five industry groups for equity plan failures (in order of total number of failures):

1. Semiconductor & Equipment
2. Consumer Services
3. Autos & Components
4. Commercial Services & Supplies
5. Pharmaceuticals & Biotech

The full report should be released by mid-May, and will look in greater detail at the equity plan proposals that failed and discuss the lessons that can be learned by these failures.

Today’s New York Times reviews a new book, Money for Nothing: How the Failure of Corporate Boards Is Ruining American Business and Costing Us Trillions, from a former investment banker, John Gillespie, at Lehman Brothers and Bear Stearns, and the co-founder of Salon.com, who worked at Dow Jones and Time Inc., David Zweig .

The book apparently looks at U.S. boards and shareholder rights, and posits that one of the reasons for the financial crisis was directors asleep at the wheel (or just warming seats). Also looks at the myth of shareholders rights, looking at actions by some of the failed companies for illustrations.

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Thanks for visiting!

Only a few more days until I officially launch this blog.  Until then, feel free to wander around, but keep in mind that things are still “under construction.” Also, please take a look at my presentation on implementing new equity compensation plans and plan amendments (link below):

If you have any suggestions on how this site could be useful to folks interested in equity compensation plans, please let me know.

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Best regards,
Ed Hauder