The AFL-CIO Office of Investment submitted a new round of shareholder proposals urging six of the largest Wall Street banks to ban special compensation packages for banking executives who leave for government positions.
The proposals address the controversial practice of “government service golden parachutes” that provide accelerated vesting of equity awards to departing senior executives. Proposals were submitted for a vote at Citigroup, Bank of America, Morgan Stanley, Lazard, JP Morgan Chase and Goldman Sachs.
“These outrageous packages for Wall Street executives who leave to go into public service must end,” said AFL-CIO Director of Office of Investment Heather Slavkin Corzo. “It seems obvious that paying executives to resign is not in the interests of bank shareholders, and this practice raises troubling questions about Wall Street’s influence over government regulators.”