Initiatives by the Clinton Administration during the last two years have stepped up enforcement, opening pay discriminators to adverse publicity and legal liabilities. This resolution calls on companies to join other leadership companies and conduct pay equity audits to identify and correct pay equity violations. The largest factor in this wide gap has been the explosion of executive stock options. One means of bridging the economic divide is to increase the number of shares owned by employees. Several studies have concluded that firms with significant employee ownership grow faster and have lower turnover.
Resolution asks the company to publish a report on employee ownership.
Corporate Governance Reform Real Elections Corporate directors are charged with evaluating CEO performance and setting CEO pay packages. Unlike several other industrialized nations where boards are made up of directors representing diverse interests, U.S. boards are often comprised of peer CEOs. This resolution challenges the current director election system in which directors elect themselves, with shareholders being relegated to an affirming role. It also questions whether boards dominated by peer CEOs can overcome their inherent conflicts of interest and serve shareholders well in matters pertaining to CEO compensation. The resolution asks companies to adhere to American democratic tradition and put up more nominees for director than there are seats to be filled.