Intel announced Wednesday it's adopting a shareholder request to allow its investors to weigh in on its compensation policies and practices concerning executive pay.
Under the Advisory Vote on Executive Compensation, also known as "say on pay," Intel shareholders will vote at the company's shareholders meeting in May on the question of whether they approve Intel's compensation committee's compensation philosophy, policies, and procedures.
Intel shareholder Walden Asset Management had served as the lead investor to craft the shareholder proposal. But since Intel has adopted the "say on pay" advisory vote for its next shareholders meeting, Walden is withdrawing its shareholder proposal.
In a statement, Walden's senior vice president Timothy Smith said:
We are pleased that a leader in corporate governance like Intel has stepped forward and endorsed the Advisory Vote, putting it in place for this proxy season. Obtaining an Advisory Vote establishes a solid foundation for constructive dialogue with shareholders.
Intel shareholders have rallied around issues before, such as in 2004, when a majority voted to approve a shareholder proposal that called for Intel to expense its stock options, despite the company's opposition to that concept.
As in the case of an advisory vote for "say on pay," the approval of the shareholder proposal to expense options was also nonbinding.