Prudential Financial Inc.'s (PRU) board approved a nonbinding
shareholder vote on executive compensation, which the company said
was approved due to shareholders' push to have a say on pay.
The life insurance firm said the change would become effective
at the company's annual meeting in 2010.
Under the plan, Prudential's shareholders will be able to cast
an advisory vote on the overall executive policies and procedures
employed by the compensation committee for Prudential's named
executive officers each year.
Calls for restrictions or tighter control on executives' pay
grew internationally as the world's economies were pinched by the
global recession. The U.S. government, as well as some governments
abroad, have been especially critical of the financial industry's
compensation in light of last year's bailouts, but Prudential
itself hasn't been a target of those attacks.
In August, the company's financial-services business reported a
4.9% drop in second-quarter earnings, ending a streak of three
quarterly losses, as profit smashed Wall Street expectations.
Prudential's shares were up 1% to $50.29 in late trading. The
stock is up almost two-thirds this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com;