Release Date: Apr 24, 2004
New York, NY At today's annual meeting, Corning, Inc. (NYSE: GLW) shareholders have cast a majority of their votes in favor of a resolution on executive compensation. The winning proposal, filed by Amalgamated Bank's LongView Collective Investment Funds, challenges excessive executive severance packages that are at least three times annual compensation of base salary plus bonus. LongView seeks oversight for such packages by requiring boards to hold a shareholder vote on any future agreements.
Corning's Board Chair responded at the company's annual meeting, saying that the board would carefully consider the proposal supported by shareholders.
Corning recently paid departing Chief Executive Officer John W. Loose over $10 million in cash plus other benefits, including the purchase of his principal residence at appraised value. The value of this package is well over three times the sum of his base pay plus bonus in any of the last few years of his employment.
"This type of compensationwhich is not tied to an executive's performanceskew the incentive systems at work in our company," said Amalgamated Bank's Chief Economist Melissa Moye. "We think such lucrative packages should go through a process of shareholder approval."
Corning's three-year total shareholder return was -54.49% for 2000-2002 "Top executives seem to be paid handsomely by Corning, even when producing losses," said Moye. "As investor-owners, we need to be active in ensuring that senior management is held to a higher standard."
The LongView Funds currently own 601,278 shares of Corning common stock.
Founded in 1923, Amalgamated Bank invests workers' retirement savings through its LongView Funds. With $8 billion in assets under management, LongView actively votes its proxies and sponsors shareholder initiatives for corporate reform. Amalgamated Bank is available online at
www.amalgamatedonline.com.
