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May 12, 2003
Activism Works

Shareholder action is a beautiful thing.

Over the weekend Glaxo revealed that it will reevaluate and likely scale back a proposed US$36 million golden parachute before the severance package is to be voted on at GSK's upcoming annual shareholder meeting on May 19. In addition, Glaxo announced a restructuring of the Remuneration Committee of its Board following outspoken shareholder and institutional investor activism over the past few weeks on both sides of the Atlantic.
Of course, "likely scale back" isn't a guarantee, but it could be a face-saver for the corporation.

It's also a British company and not a USofA one, but let's hope it's a trend.

Last week California State Treasurer Phil Angelides, a member of both CalPERS Board and the California State Teachers' Retirement System (CalSTRS) Board -- which holds nearly $726 million in GSK stock -- spoke out against excessive pay and pension packages by corporations. In remarks at a CalSTRS meeting in Sacramento Wednesday, Angelides noted, "Maybe it would be a good idea to dump stock in companies with excessive CEO packages -- it would send a strong message."
Maybe it would be a very good idea, indeed.

Posted by AnneZook at 12:57 PM


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