Biotechnology firm Amgen is asking its shareholders what they think of its compensation plan, reports the Wall Street Journal.
In its March 26 proxy, Amgen directed shareholders to a 10-question online survey. Queries include whether the plan is based on performance and whether the performance goals are clearly disclosed and understandable.
Amgen’s survey is the first of its kind and comes when executives and directors are seeking new ways to reach out to unhappy shareholders. Drug maker Schering-Plough had planned a similar survey before it agreed last month to be acquired by Merck; the company declined comment on whether it will still conduct the survey, according to WSJ. Prudential Financial this year created a link on its website so investors could comment on its compensation plan.
Several other companies are likely to conduct shareholder polls during the next few months, says corporate governance monitor Gary Lutin.
Edward Durkin, a veteran activist investor with the United Brotherhood of Carpenters and Joiners, says companies are much more responsive than a few years ago. This year, he says, officials of several firms called him to discuss pay practices before he could call them; a few put CEOs and directors on the phone, he says.
Amgen invited shareholders to give online feedback on its executive-pay practices last year, but only a handful responded, says Amgen spokesperson David Polk. Responses ranged from thoughts on appropriate levels of compensation to comments on incentive pay, he says.