Evercore Partners Inc. suffered rejection in a key compensation vote last week, becoming the latest bank to face shareholder pressure concerning pay practices.
The boutique investment bank, founded by former Deputy U.S. Treasury Secretary Roger Altman, disclosed that 57% of its stockholders voted against a proposal to increase the firm’s stock incentive compensation plan by 11 million shares, according to a recent regulatory filing.
Evercore recorded the results, based on 36 million votes cast, at the company’s annual shareholder meeting Thursday. If the proposal had passed, it would have added to the 20 million shares of common stock that Evercore has available for such pay awards under its 2006 incentive plan.
Evercore had sought approval of the amended incentive plan to “attract, retain and motivate employees and to align the interests of our employees with those of our stockholders,” the company said in its proxy statement.
The firm, which has been aggressive in adding bankers from larger rivals since the financial crisis, hired seven senior managing directors last year.
A spokesman for Evercore said, “We have sufficient equity under our current plan for us to continue to run the business and execute our strategy for the foreseeable future.”
He added, “We will continue to maintain an active dialogue with our stockholders about the best course of action for the company going forward.
- Evercore Shareholders Vote Down Incentive Compensation Plan (blogs.wsj.com)
- GMI Ratings Governance Issue | Nabors Industries Ltd. (businessinsider.com)