Denise L. Nappier, elected state treasurer of Connecticut in 1998, oversees $23 billion in retirement plans and trust funds.
Why is executive pay a hot-button issue now? Now? We've been on this since 2000. We don't begrudge pay for solid performance. It's important to attract and retain top-flight talent. We have a problem when there's a disconnect between high pay and the performance of a company. That threatens the credibility of a company's leadership and can harm the value of your shares.
What part of CEO pay rankles you most? Increasingly, it's the retirement package. That's the case with Pfizer. During discussions with the board, we asked if they'd urge CEO Hank McKinnell to return some of the $6.5 million a year in pension benefits he'll receive. In the end, we withheld our vote for re-election of compensation-committee members. We also withheld votes at ATT, Merck, Verizon and BellSouth, and plan to at Home Depot, Wal-Mart, Time Warner and Safeway.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How should pay be structured? It's not easy to come up with a one-size-fits-all approach. But we like to look at internal pay equity. How much is the CEO paid versus other managers, as well as the workers on the factory floor? The CEO shouldn't get 300 to 400 times the pay of the average worker. Also, the CEO should be judged over three to five years instead of one, and on strategic vision as well as operational success. A lot of ExxonMobil shareholders may be happy today because the industry is doing so well, but we're looking at what's being done to mitigate the risk of climate change and at the commitment to clean technology. These are issues the CEO should be evaluated on.
What can individual shareholders do? Hold the board accountable. A pending ruling at the Securities and Exchange Commission will make it easier to understand a CEO's total compensation. It's also important for the SEC to require information on the independence of the compensation consultants. For now, our proxy voting guidelines, and our votes, are on our Web site, www.state.ct.us/ott (click on "Pension Fund").
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
