Leading Proxy Voting Advisor Recommends Support for
Teamster Shareholder Proposal to Eliminate Tax Gross-Ups
(WASHINGTON) – ISS, the country’s leading proxy voting advisor, has recommended that shareholders vote for a Teamsters-sponsored shareholder proposal at FedEx [NYSE: FDX] that calls on the board of directors to eliminate the practice of paying the personal taxes owed on restricted stock awards on behalf of CEO Fred Smith and other named executive officers.
“Shareholders are fed up with FedEx paying personal taxes for the company’s well compensated executives,” said Ken Hall, General Secretary-Treasurer of the International Brotherhood of Teamsters. “FedEx has cut pensions and raised the costs of medical coverage for workers while continuing to lavish executives with this outdated perk.”
According to the company’s 2014 proxy statement, FedEx paid out more than $1.8 million in tax gross ups for the named executive officers last year. Over the past four years FedEx has paid more than $6.4 million just in tax payments for top executives’ restricted stock awards. The FedEx shareholder meeting will be Sept. 29.
A review of ISS research indicates that only fewer than 40 companies in the S&P 500 continue to pay tax gross-ups with no commitment to eliminate the practice.