URI United Rentals

AFL-CIO Targets 'Derelict' CEO Compensation Committee Directors In New Executive Paywatch Website Highlighting Excessive CEO Pay www.paywatch.org WASHINGTON, April 15 /PRNewswire/ -- Many executive pay packages rose dramatically over the last year as a result of compensation committee directors who approved excessive deals despite CEOs' poor performance and declines in share prices. But shareholders are increasingly withholding votes from so-called "derelict" directors to send a message that overly generous pay packages must stop. To help restore accountability to the executive compensation system, the AFL-CIO has launched on its newly updated Executive Paywatch website, http://www.paywatch.org/, a vote "no" campaign targeting "derelict" directors at 10 companies where CEOs received over-the-top pay packages. "We are urging shareholders to take a proactive approach in stopping runaway CEO pay dead in its tracks," said AFL-CIO Secretary-Treasurer Richard Trumka. "Irresponsible directors must be removed to rein in excessive CEO pay that ultimately robs working families of their retirement security." The AFL-CIO is urging shareholders to withhold support from the following directors for approving excessive executive pay: Michael Miles of American Airlines (NYSE:AMR); William Campbell of Apple Computer (NASDAQ:AAPL); Myra Biblowit of Cendant (NYSE:CD); Carol Bartz of Cisco Systems (NASDAQ:CSCO); Richard Parsons of Citigroup (NYSE:C); John Williams of Clear Channel Communications (NYSE:CCU); Decker Anstrom of Comcast (NASDAQ:CMCSA); Robert Spilman of Dominion Resources (NYSE:D); William Tauscher of Safeway (NYSE:SWY) and Bradley Jacobs of United Rentals (NYSE:URI). The AFL-CIO's Executive Paywatch website profiles case studies of each of these directors and the CEO pay decisions made under their watch. For example, at Dominion Resources, CEO Thomas Capps' total compensation increased 160 percent in 2003, even though the company's net income fell by 77 percent. Capps has had an interlocking directorship with compensation committee director Robert Spilman, the former CEO of Bassett Furniture where Capps served on his board in 1997. In the coming year, two proposed reforms will have a major impact on CEO compensation: The Securities and Exchange Commission is considering allowing shareholders to nominate directors for election on company proxy statements. Secondly, the Financial Accounting Standards Board has issued a proposed standard that would require companies to begin expensing stock options next year. Executive Paywatch is also launching an e-campaign to support stock option expensing. Executives disproportionately benefit from stock options and this cost has been kept off the books. Moreover, not expensing stock options has artificially boosted profit reports, thereby generating further increases in CEO pay. Visitors to http://www.paywatch.org/ will be encouraged to send a letter to regulators and lawmakers urging that all stock options be expensed. "While some companies have begun to restructure their executive compensation system in the wake of corporate scandals, others have only engaged in window dressing," said Trumka. "Moreover, some of these reforms were only adopted after shareholders demanded change." The AFL-CIO represents more than 13 million working men and women. Union members participate in the capital markets as individual investors and through a variety of benefit plans. Union sponsored benefit plans have a total of more than $400 billion in assets. DATASOURCE: AFL-CIO CONTACT: Suzanne Ffolkes of the AFL-CIO, +1-202-637-5018 Web site: http://www.aflcio.org/ http://www.paywatch.org/

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