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.
