Tech CFOs voice support for compensation votes.

• Author: Marshall, Jeffrey
• Position: GOVERNANCE

Governance critics assume that executives in general oppose any attempt to give shareholders a vote on executive pay. But do they? A recent survey by BDO Seidman LLP found that a strong majority of leading technology company CFOs polled supported the idea of giving shareholders such a vote--61 percent in favor, versus 39 percent against.

That's almost the reverse of the existing demographic. Just 31 percent of CFOs said their company allows a nonbinding shareholder vote on executive compensation plans, compared to 69 percent that don't.

The survey, conducted earlier this year, sampled opinions from 100 CFOs at technology companies throughout the U.S., including a subset in Silicon Valley. The companies polled have revenues ranging from more than $100 million to $15 billion.

"At a time when regulatory organizations are pushing for more executive compensation disclosure, it is reassuring that CFOs at technology businesses are supportive of shareholders having a greater voice in approving executive compensation levels," said Andy Gibson, a partner in the Technology Practice at BDO Seidman and co-leader of the firm's National Executive Compensation practice. "In addition, relatively few CFOs indicated that executive compensation disclosure changes, such as 409 A and FAS 123R, are having significant impact upon their company's abilities to attract and retain talent."

While more than two-thirds of the CFOs said their company's compensation plans have been impacted by regulatory changes focused on improved disclosure, 65 percent believe that...