Blockbuster Adopts 'Say on Pay'

Blockbuster's board of directors yesterday adopted a policy to give shareholders a nonbinding advisory vote on executive compensation.

The vote, which will be held at each annual meeting beginning in 2009, will allow shareholders to advise the board on whether the pay packages of top executives should be ratified.

Blockbuster said more than half the votes cast at the company's 2007 annual meeting supported the enactment of the new rule, which is also known as a "say on pay" provision.

At last year's annual meeting, Blockbuster shareholders approved a board proposal to make all directors subject to annual elections.

"our board is very pleased to take this important step, which reinforces our commitment to implementing strong corporate governance practices and improving transparency with our shareholders," Chairman and CEO James Keyes said in a statement. "Holding this advisory vote on executive compensation on an annual basis will not only improve dialogue with our shareholder base, it will also provide our board with valuable feedback on compensation policies, which currently link both bonus and equity compensation to Blockbuster's financial and operating performance."