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Shareholders Deflate 'Golden Parachutes' at Sprint
CWA and other unions struck four serious blows for good corporate governance at Sprint's shareholder meeting in Overland Park, Kan.
Backing a proposal by Amalgamated Bank, they won 63 percent of the vote to require Sprint to submit for shareholder approval any future "golden parachute" deals for corporate executives if they exceed two times their annual salary and bonus.
They won 38 percent of the vote for the AFL-CIO's position that Sprint should dump its so-called "independent auditor" for conflict of interest.
They convinced shareholders to vote 32 percent of shares "for" the IBEW - and originally CWA - proposal to require shareholder approval of re-pricing of executive stock options. CWA's proposal did not appear on the proxy because Securities and Exchange Commission rules allow the rejection of virtually identical proposals.
Shareholders voted 14 percent of shares in favor of CWA's proposal to cap executive compensation at 50 times the average employee's in the previous year, sending a strong message to CEO Gary Forsee that shareholders demand accountability.
About 20 CWA local leaders and another 30 from the Kansas City, Mo., Central Labor Council leafleted shareholders prior to the meeting on May 14, then joined CWA Telecommunications Vice President Jimmy Gurganus, District 4 Vice President Jeff Rechenbach and AFL-CIO national staff inside.
Speaking on CWA's proposal, Gurganus slammed Forsee on his "runaway" compensation, granted him at a time when Sprint workers are hurting.
"Just last month, Kansas City newspapers announced that Sprint's new top executive will get as much as $4.4 million in salary and bonuses this year," Gurganus pointed out. "This does not include the rich severance plans and so-called 'make-whole' plans awarded to the new CEO.
"Hourly workers at this company, meanwhile, have been expected to accept cuts in their retirement benefits, cuts in their sick pay, and more out-of-pocket payments for their employee and retiree medical insurance."
Sprint's "independent" auditor, Ernst & Young, came under public scrutiny when Forsee's predecessor, William Esrey, and former Sprint President Ronald LeMay paid that firm to help them avoid taxes on their gains from exercising stock options. The New York Times reported that the California Public Employees' Retirement System voted its 5.3 million shares against the auditor and withheld votes for the directors who are on Sprint's audit committee. Forsee, it said, acknowledged that he had received a very strong message and would review the matter.
Turning his attention to the still unresolved strike by Sprint New Jersey workers, Gurganus e-mailed Sprint locals nationwide, asking them to contribute at least $500 a month to a fund set up in District 1 to assist the Local 1101 members.
"The New Jersey members are fighting your fight," he stressed. "If we cannot beat back the changes in sickness disability benefits in New Jersey, then you can be assured that they will appear at every bargaining table in the future."
Checks made out to Local "1101 Adopt-a-Striker Fund" should be sent to the fund c/o CWA District 1, 80 Pine St., 37th Floor, New York, NY 10005. Envelopes should be addressed to the attention of CWA Representative Ed Baxter. Further information is available from Baxter at (212) 344-7332.
In addition, Gurganus asked each Sprint local to canvas members to contribute $5 a pay period to aid the strikers. Checks should be made out to "CWA Special Projects" and carry the notation "Assistance for NJ Strikers." They should be sent to Pat LaScala, Business Manager, CWA Local 1101, 1703 Castle Hill Ave., Bronx, NY 10462.
Backing a proposal by Amalgamated Bank, they won 63 percent of the vote to require Sprint to submit for shareholder approval any future "golden parachute" deals for corporate executives if they exceed two times their annual salary and bonus.
They won 38 percent of the vote for the AFL-CIO's position that Sprint should dump its so-called "independent auditor" for conflict of interest.
They convinced shareholders to vote 32 percent of shares "for" the IBEW - and originally CWA - proposal to require shareholder approval of re-pricing of executive stock options. CWA's proposal did not appear on the proxy because Securities and Exchange Commission rules allow the rejection of virtually identical proposals.
Shareholders voted 14 percent of shares in favor of CWA's proposal to cap executive compensation at 50 times the average employee's in the previous year, sending a strong message to CEO Gary Forsee that shareholders demand accountability.
About 20 CWA local leaders and another 30 from the Kansas City, Mo., Central Labor Council leafleted shareholders prior to the meeting on May 14, then joined CWA Telecommunications Vice President Jimmy Gurganus, District 4 Vice President Jeff Rechenbach and AFL-CIO national staff inside.
Speaking on CWA's proposal, Gurganus slammed Forsee on his "runaway" compensation, granted him at a time when Sprint workers are hurting.
"Just last month, Kansas City newspapers announced that Sprint's new top executive will get as much as $4.4 million in salary and bonuses this year," Gurganus pointed out. "This does not include the rich severance plans and so-called 'make-whole' plans awarded to the new CEO.
"Hourly workers at this company, meanwhile, have been expected to accept cuts in their retirement benefits, cuts in their sick pay, and more out-of-pocket payments for their employee and retiree medical insurance."
Sprint's "independent" auditor, Ernst & Young, came under public scrutiny when Forsee's predecessor, William Esrey, and former Sprint President Ronald LeMay paid that firm to help them avoid taxes on their gains from exercising stock options. The New York Times reported that the California Public Employees' Retirement System voted its 5.3 million shares against the auditor and withheld votes for the directors who are on Sprint's audit committee. Forsee, it said, acknowledged that he had received a very strong message and would review the matter.
Turning his attention to the still unresolved strike by Sprint New Jersey workers, Gurganus e-mailed Sprint locals nationwide, asking them to contribute at least $500 a month to a fund set up in District 1 to assist the Local 1101 members.
"The New Jersey members are fighting your fight," he stressed. "If we cannot beat back the changes in sickness disability benefits in New Jersey, then you can be assured that they will appear at every bargaining table in the future."
Checks made out to Local "1101 Adopt-a-Striker Fund" should be sent to the fund c/o CWA District 1, 80 Pine St., 37th Floor, New York, NY 10005. Envelopes should be addressed to the attention of CWA Representative Ed Baxter. Further information is available from Baxter at (212) 344-7332.
In addition, Gurganus asked each Sprint local to canvas members to contribute $5 a pay period to aid the strikers. Checks should be made out to "CWA Special Projects" and carry the notation "Assistance for NJ Strikers." They should be sent to Pat LaScala, Business Manager, CWA Local 1101, 1703 Castle Hill Ave., Bronx, NY 10462.