One hears often lately that shareholders are simply incapable of "throwing the bastards out." Even in the face of mounting losses and some very poor risk management very few corporate heads have actually been tossed by shareholders. Government, of course, has been more "effective" in this regard. Still, of the vanishingly small pool of shareholder executed CEO defenestrations CEO pay has played a major part in, again, a small fraction of cases. For the uninitiated, a small fraction of a vanishingly small pool is not much. We wonder, however, if the trend is shifting, at least in the UK:
In one of the biggest investor rebellions over directors' pay, about 59 per cent of Shell shareholders voted down the company's remuneration report.
The Shell 'No' vote was the second biggest against a UK company's remuneration report this year, topped only by the 80 per cent of votes cast against Royal Bank of Scotland, according to Manifest, the voting agency.
Shell's executive pay plan voted down in shareholder rebellion [The Financial Times]