Nearly One-third of Shareholders Support Say on Pay

AFL-CIO Calls on Company to Respond to the Resounding Call for Change on Majority Voting, Annual Director Elections & Say on CEO Pay

Pulte shareholder proposals on board accountability supported by the AFL-CIO received a majority of votes today at the company’s annual meeting.  The AFL-CIO pointed to the record-high support as a clear marker that shareholders want a serious shift in CEO compensation and board accountability at Pulte.  The shareholder proposals were introduced at Pulte’s annual shareholder meeting in Bloomfield Hills, Michigan.

Through retirement savings, America’s working families are significant holders of Pulte stock.  Union-sponsored pension funds have $400 billion in total assets as institutional investors.

“The record votes at today’s meeting send a strong and powerful message to Pulte that shareholders will not stand for an absentee board and excessive CEO compensation,” said AFL-CIO Secretary-Treasurer Richard Trumka. “The question remains: Will Pulte listen, respond and reach out to investors, or will it continue to ignore the strong message that was sent today to clean up its corporate governance?” 

The votes for the AFL-CIO supported shareholder proposals:

•47.4% in favor of the “Majority Voting” proposal (Item # 4)
This proposal calls on the company to strengthen their director elections by establishing a majority-vote policy in the company’s governance documents.  Directors who fail to receive a majority vote from shareholders should not be allowed to continue to serve on the board.

•65.2% in favor of the “Annual Director Elections” proposal (Item # 5)
This proposal would require annual elections (or “declassifying the board”) of the full director slate.  Under the current classified system, individual directors face election every three years, which insulates the board and decreases accountability.  This is the second year in a row that a majority of shareholders have insisted that directors should be accountable on an annual basis.

•33.2% in favor of Say on Pay (Item #7 – sponsored by the AFL-CIO Reserve Fund)
The best way to ensure that shareholders maintain a meaningful voice in executive pay decisions is to require Pulte to submit executive compensation packages to a non-binding shareholder vote.

The high withhold vote against the reelection of directors William B. Smith, Brian P. Anderson and Patrick J O’Leary was seen as an important first step in engaging the Board to be responsive and accountable.  The strong votes on the shareholder proposals today indicate that shareholders will continue to demand reform at Pulte, said the AFL-CIO.

For copies of the proposals, please call 202-637-3900.