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AFL-CIO Urges Rite Aid Shareholders to Vote to Stop Paying Taxes for Rite Aid Executives' Golden Parachutes (AFL-CIO Press Advisory)

AFL-CIO Urges Rite Aid Shareholders to Vote to Stop Paying Taxes for Rite Aid Executives' Golden Parachutes (AFL-CIO Press Advisory)

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Published by Rand Wilson
The AFL-CIO is urging Rite Aid shareholders at the annual meeting to vote for a proposal that recommends limiting tax gross-up payments for senior executives.
The AFL-CIO is urging Rite Aid shareholders at the annual meeting to vote for a proposal that recommends limiting tax gross-up payments for senior executives.

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Published by: Rand Wilson on Jun 22, 2011
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06/22/2011

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Media Advisory For immediate release: June 20, 2011 For more info contact: Rand Wilson (617) 803

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AFL-CIO Urges Rite Aid Shareholders to Vote to Stop Paying Taxes for Rite Aid Executives' Golden Parachutes
Proposal sent to shareholders ahead of Rite Aid annual meeting Harrisburg, PA ± The AFL-CIO is urging Rite Aid shareholders at the annual meeting to vote for a proposal that recommends limiting tax gross-up payments for senior executives. A tax grossup is a payment for an executive that is equal to the executive's tax liability. At Rite Aid, top executives are entitled to millions of dollars in tax gross-ups for excise taxes on their golden parachutes following a change in control. Two of Rite Aid's senior executives have also received tax gross-ups for income taxes on housing and transportation benefits. The AFL-CIO's proposal will be voted on by shareholders at Rite Aid's annual meeting at 10:30 a.m. on June 23, 2011 in Harrisburg, Pennsylvania. "Promises to cover the tax liabilities of Rite Aid's executives are not fair to company shareholders or employees who must pay their own taxes," said AFL-CIO Office of Investment Director Daniel Pedrotty. "As worker-owners and long-term shareholders, we support tying executive pay to performance and deploying company resources efficiently," he added. Leading proxy voting advisors have recommended that their clients support proposals that call for companies to adopt a policy of not providing tax gross up payments to executives. This year, both Institutional Shareholder Services and Glass Lewis have recommended that Rite Aid shareholders vote for the AFL-CIO's shareholder proposal to limit tax gross-ups. The AFL-CIO's shareholder proposal at Rite Aid is part of the AFL-CIO's campaign to rein in out-of-control executive compensation. Earlier this year, the AFL-CIO profiled Rite Aid's tax gross-ups on its Executive PayWatch website http://www.paywatch.org/. A copy of the AFL-CIO's letter to Rite Aid shareholders is available by calling the AFL-CIO Office of Investment at (202) 637-3900. ###

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