CVD homepage
What's new?
Online library
Order materials
Get involved!
Links
About CVD

Press Release

AFL-CIO, UWUA Back Corporate Governance Reform Proposals at Entergy Corp.
May 11, 2004

In a bid to make Entergy Corp. (NYSE: ETR - News) more accountable to investors, the AFL-CIO and the Utility Workers Union of America (UWUA) urged shareholders to vote in favor of two reform proposals to be decided at Entergy's May 14 annual meeting in New Orleans. The letter to shareholders is available at www.ReformEntergyNow.org.

"The retirement savings of America's working families depends on companies like Entergy having responsible executive pay and accountable directors," said AFL-CIO Secretary-Treasurer Richard Trumka. "The problem of runaway executive pay is linked to the fact that too often corporate directors in the U.S. are unaccountable to shareholders. These two proposals at Entergy help address that problem."

The first resolution, which was submitted by the AFL-CIO for inclusion in Entergy's proxy statement, urges that shareholders be required to approve "golden parachute" severance agreements that exceed certain limits. The second resolution, sponsored by the UWUA, recommends cumulative voting in the election of directors. The resolutions appear as Proposals 3 and 4 in Entergy's proxy statement.

"We believe the practice of the board of directors hand-picking candidates for director and then presenting shareholders with a virtual fait accompli tends to result in a board which is a rubber stamp for management," observed Donald Wightman, President of the UWUA. "With cumulative voting, shareholders have a fair opportunity to elect at least one director who would bring an independent perspective to the corporation."

The AFL-CIO represents 13 million working men and women. Union members participate in the capital markets as individual investors and through a variety of pension and benefit plans. Pension plans sponsored by unions affiliated with the AFL-CIO hold approximately $400 billion in assets. The UWUA represents 50,000 workers at utility and power companies across the U.S., including approximately 1,000 workers at Entergy power plants in Massachusetts and New York.


top of page


______________________________________________________________________
The Center for Voting and Democracy
6930 Carroll Ave. Suite 610, Takoma Park, MD 20912
(301) 270-4616        info@fairvote.org