Citizens Advisers Updates Proxy Voting Guidelines with Special Attention on Compensation and Stock Option Plans.Business Editors PORTSMOUTH, N.H.--(BUSINESS WIRE)--Dec. 22, 2003 Socially Responsible Investment Management Firm Tightens Golden Parachute parachute, umbrellalike device designed to retard the descent of a falling body by creating drag as it passes through the air. The development of modern aircraft has led to many experiments in the aerodynamic problems of parachute design, with the result that the Payouts, Sets Targets for Options Vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: and Dilution Thresholds Citizens Advisers, Inc., one of the nation's oldest and largest socially responsible investment management firms, today announced the completion of the annual proxy voting Proxy voting is the delegation to another member of a voting body of that member's power to vote in his absence. It is essentially synonymous to delegated voting. Proxy voting is commonly used in corporations for voting by members or shareholders, because it allows members guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. review by the Proxy Voting Committee, which is responsible for overseeing the proxy voting process. Important changes made in order to strengthen the already rigorous set of instructions take effect in 2004. "We take our responsibility to vote in the best interest of our shareholders very seriously," said David Loehwing, social research analyst and chair of the proxy voting committee. "Through proxy voting, Citizens plays an important role in guiding businesses toward financial success and responsible social actions," Loehwing continued. The year-end review established the following thresholds: -- Setting the golden parachute golden parachute, a contract given to top executives of a corporation to provide benefits in case of job loss due to a takeover by another firm or a merger. The unusually generous benefits may include substantial severance pay, a one-time bonus payment when payout limit to 2.99% of the average salary in the previous three-year period. "It makes better sense to income average than to base the payout on the last year's income, which is usually the greatest amount," Loehwing stated. -- Establishing stock option plans that allow vesting of less than 2 years as a signal to vote against the plan. -- Voting against management proposals where potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. from all stock option plans is greater than 10%. The Committee members include one representative each from the legal, social research, investment operations and investment management departments. Investor Responsibility and Research Center (IRRC) is the proxy-voting agent for Citizens. The Committee also reviews and approves the procedures on a yearly basis to ensure the procedures provide for: 1) voting proxies in the best interest of clients; 2) maximizing the value of the underlying shares being voted on and; 3) complying with any new rules issued and enforced by the SEC or other relevant regulatory bodies. As a leader in socially responsible investing Socially responsible investing describes an investment strategy which combines the intentions to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, (SRI), Citizens' mission is to generate superior returns by investing in companies that are fundamentally strong and socially responsible. Citizens serves the needs of individual and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. with a wide array of investment options, including domestic and international equity, fixed-income and money market products. |
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