You know that nearly every public company will have to offer its shareholders a resolution to approve or reject its current executive compensation package at the next annual meeting of shareholders, based on the information in its next Proxy Statement.
You know that your board of directors will view a "No" vote on Shareholder Say on Pay as something close to Armageddon.
You know the dates and proposed agenda for the Board's and Compensation Committee's remaining meetings in 2010.
You know that today is October 7.
SO...WHAT STRATEGY HAVE YOU DEVELOPED FOR PREVENTING THE ARMAGEDDON THAT WOULD BE A "NO" VOTE IN SHAREHOLDER SAY ON PAY?
I strongly urge you to discuss your strategy - or action plan - for preventing a "No" vote on Shareholder Say on Pay at the October Board or Compensation Committee Meeting.
Do not (unless you have your resume completely up to date):
- Assume that your directors are "all over" this issue,
- Wait for panic to set in before you develop this strategy, or
- Put your head in the sand and hope for the best from your loyal shareholders and ISS.
THERE IS A RIGHT WAY AND A WRONG WAY TO GO ABOUT THE PROCESS OF MINIMIZING THE LIKELIHOOD OF A "NO" VOTE.
I suggest the right way. If you have not developed a specific and well thought-out action plan, a time line and a task list, call your executive compensation counsel and consultant right away.