In whose interest?

April 2006
Pensions & Investments;4/17/2006, Vol. 34 Issue 8, p10
The article focuses on a joint study of mutual fund proxy voting on executive compensation. The findings should wake up investors, especially 401(k) and other defined contribution plan sponsors and investors using mutual funds, to their fiduciary obligation. The study helps show which mutual fund companies appear to be committed to shareholder interests, making sure executive pay is connected to increasing shareholder value. The study found many of them unwilling to use proxy votes to restrain executive compensation excesses and press corporate compensation committees to adopt performance-based compensation packages.


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