Are Stockholders Taking a More Activist Role With Their Votes?

[Dover]

Check out some of the issues proposed by shareholders of GE that are up for a vote this month....all of which GE recommends its shareholders vote AGAINST.



* Cumulative Voting

* Animal Testing

* Report on GE's risks ie. storage of irradiated nuclear fuel rods

* Report on expenditures and the health and environmental consequences of PCB exposure and remediation at various sites.

* Offshoring and outsourcing and its effects

* Report on GE's global responsibilities re: environmental, social and economic sustainability policies in communities in which they operate.

* Compensation packages for executives, and conflicts of interest where board members serve on the comp. decision-making committees.

* Excessive compensation of executives. (usually a company argues about the need for this to attract talent and reward for good performance. But even the president of the U.S. doesn't require this kind of salary and perks).

* Exec. Salaries/packages tied to performance

* Change in bylaws to require that an independent director shall serve as Chairman of the Board of Directors to better represent and protect shareholders.

* Independent audits

* Look into the sale of the company to release significantly more value to the shareholders than is reflected in the share price. (break up the conglomerate structure of GE businesses).


I wonder how common these kinds of proposals are and how effective in effecting company policy?

Shareholder Proposals on page 41 of this proxy report:

http://www.ge.com/files/usa/en/ar2003/2004_proxy_statement.pdf