Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Proxy Advisers Pan Mylan Pay Policies

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Proxy Advisers Pan Mylan Pay Policies

Article excerpt

Three firms that advise institutional investors on proxy voting are recommending that Mylan stockholders reject the generic drug maker's compensation policies when they meet Friday in Amsterdam for the company's shareholder meeting.

Institutional Shareholder Services, Glass Lewis and Egan-Jones also are recommending voting against re-electing director Wendy Cameron, who has chaired the board committee overseeing Mylan's pay policy since October.

Rockville, Md.-based ISS cited Mylan's "inadequate" response to the last shareholder vote on pay practices in 2014, when about 60 percent of shareholders supported the company's pay plan. Glass Lewis, which is based in San Francisco, also cited Mylan's "apparent lack of response to the significant shareholder opposition" reflected in that vote as well as executive pay being out of whack with the company's performance.

Most companies receive overwhelming shareholder support for their pay plans. So far this year, the pay policy of the average company in the Russell 3000 has been supported by 91 percent of shareholders, according to Semler Brossy. The Los Angeles-based consulting firm said pay plans have only been rejected at 1.5 percent of companies this year.

Large companies are getting failing votes less frequently because they are learning how to respond to pay concerns, according to Todd Sirras, managing director of Semler Brossy.

Compensation consultant Bruce Ellig, author of "The Complete Guide to Executive Compensation," said the fact that three proxy advisory firms are recommending that Mylan shareholders vote "no" is significant given how often shareholders routinely approve compensation policies.

Mylan executives, including executive chairman Robert J. Coury, are among the highest-paid executives at public companies based in the region. The company's five highest-paid executives received compensation valued at $66.9 million last year, making them the highest-paid executive team among regional companies.

The company, which moved its legal headquarters to the Netherlands last year but operates out of Cecil, did not respond to an email and voice mail seeking comment. …

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