Employees are Stockholders Too

April 6, 2001 (PLANSPONSOR.COM) - An employee of Pratt & Whitney has filed a shareholder resolution on executive compensation as a shareholder of her employer through her retirement plan.

Donna Benson, a 21-year veteran employee, was rankled by the increased in senior managers’ compensation that coincided with continuing job cuts at the United Technologies (UTC) division and wants to link executive pay with employee development and satisfaction, socialfunds.com reported.

Programs that link part of executive compensation to employee satisfaction have been implemented at other companies, such as Sears Roebuck and Co and Eastman Kodak.

The Securities and Exchange Commission (SEC) rejected the companies’ claims that the issues were ordinary business and should be handled by the Board of Directors and that the resolution would not benefit shareholders as a whole.

The UTC resolution will be voted on at the company’s annual meeting on April 27.