WASHINGTON — The Teamsters Affiliates’ Pension Plan (TAPP) has broadened shareholder rights at Bank of America. At Bank of America’s annual meeting of shareholders in April 2002, a majority of the shares voted approved TAPP’s proposal calling for a policy that would allow shareholders to vote on high severance packages for senior executives.
On Friday, October 25, 2002 The Bank’s Board of Directors adopted a policy, “to seek Stockholder Approval for Future Severance Agreements with Senior Executives that provide Severance Benefits in an amount exceeding the Severance Benefit Limitation.”
“When it was announced that our proposal won the majority support from voting stockholders, Chairman Lewis promised shareholders that the proposal would ‘absolutely’ become corporate policy,” said Carin Zelenko, Director of Teamsters’ Office of Corporate Affairs. “We’re pleased that Bank of America has kept its pledge to shareholders.”
“The days of departing executives lavished with obscene severance packages despite the fact that shareholder value was destroyed on their watch is over,” said C. Thomas Keegel, General Secretary-Treasurer of the International Brotherhood of Teamsters. “The Bank’s policy puts real teeth into the notion of pay for performance.”
In addition to Bank of America, Teamster funds received majority votes on shareholder proposals at Airborne, Inc., The Kroger Company and Sysco Corp. over the past year. These companies, however, have not adopted the proposals as policy. “We hope that Bank of America’s action serves as a wake-up call to the many corporations who ignore majority shareholder votes,” said Carin Zelenko.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States and Canada.