Edison International on Monday stepped up efforts to defeat a shareholder's proposal that would limit executive compensation, arguing in a letter to potential voters that current policies are sufficient, the Los Angeles Times reports.
The letter came days after an influential shareholder advisory group, Institutional Shareholder Services Inc., recommended that Edison stockholders approve the compensation guidelines proposed by John Chevedden, who said he owned about 100 shares of stock in the utility holding company.
Chevedden's proposal calls on Edison to make at least 75% of future stock options and stock awards to its senior executives based on performance measures that are adopted by the board and disclosed to shareholders.
Executive compensation is a hot topic among shareholder advisory groups that complain that top executives are taking home huge sums that are sometimes only tangentially related to the company's financial performance.
Edison Chief Executive John Bryson received more than $12.7 million in salary, incentive pay, stock awards and other compensation in 2006 and took home more than $3 million more by cashing in shares, according to a regulatory filing.
Edison, based in Rosemead, owns Southern California Edison and Edison Mission Energy, an unregulated power producer.
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