Push to link Abbott exec pay, compliance fails
THE ASSOCIATED PRESS August 15, 2013 8:40AM
Updated: August 16, 2013 5:39AM
ALBANY, N.Y. — The New York state pension fund’s shareholder resolution calling for Abbott Laboratories to link executives’ pay and bonuses to compliance penalties has failed again this year, though the fund’s trustee says they’ll likely try again.
The proposal drew 39 percent support in April, almost 5 percent more than last year.
State Comptroller Thomas DiNapoli, the $160 billion fund’s trustee, says it’s an issue the fund will pursue as investors.
Six other big drug makers have recently adopted similar changes in their pay policies while under investor pressure. They include Bristol-Myers Squibb, where the New York fund withdrew a similar resolution following an agreement.
Abbott paid $1.5 billion last year for marketing the drug Depakote for unapproved uses. Its directors opposed the resolution saying its executive performance evaluations best serve shareholders.