Edison International said on Tuesday that its board has adopted a so-called “say-on-pay” policy that will give shareholders an advisory vote on executive compensation.
The first such vote will take place at the Rosemead utility company’s annual meeting on April 22.
Under the policy, shareholders will be able to cast an annual non-binding advisory vote on Edison’s executive compensation philosophy, policies and procedures, which are laid out in the company’s compensation discussion and analysis section of the proxy statement.
Corporate governance reformers have long advocated public companies adopt such policies to counter criticism of large executive pay packages during times when a company’s share price and dividends are lagging.
Directors adopted the policy at their December board meeting, the company said.
Shares were up 37 cents, or 1 percent, to $35.61 in midday trading on the New York Stock Exchange.