BUSINESSUnion seeks to limit Aetna execs' payA plumbers union leads the fight to have Aetna shareholders vote on limiting executive salaries.By Robert Kazel, amednews staff. April 12, 2004. A trade union with mutual fund money invested in Aetna Inc. plans to ask shareholders at the insurance company's upcoming annual meeting to set strict limitations on the compensation of its top executives. The proposal by the Boston-based United Assn. of Plumbers, Pipefitters & Sprinklerfitters, to be voted on April 30 in Aetna's headquarters city of Hartford, Conn., would advise Aetna's compensation panel to impose caps on executive salaries, bonuses and long-term incentive payouts. The union wants Aetna to limit the yearly salary of Aetna's CEO to $1 million. In addition, the proposal would limit annual bonuses to 100% of executives' salaries and specifies the bonuses must be awarded according to "well-defined quantitative [financial] and qualitative [nonfinancial] performance measures." The measure seeks to limit long-term equity compensation to $1 million and would require any long-term awards to be issued as restricted stock, not stock options as is currently practiced. No long-term rewards would be given in the absence of "justifiable performance criteria and challenging performance benchmarks." The union, in a message to shareholders in Aetna's proxy statement, said pay to high-level executives at most American companies, including Aetna, has become "excessive, unjustified, and contrary to the interests of the company" and investors. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
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The doctors are in the house
The AMA's House of Delegates is holding its Interim Meeting Nov. 7-10 in Houston, addressing issues such as health system reform and physician payment. Meeting coverage - Slideshow Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
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