Robert D McCrie, a New York-based shareholder in world number one agency holding company Omnicom Group, has filed a revised proxy with the US Securities and Exchange Commission that seeks to deny the award of stock options to the company's officers.
McCrie’s submission criticizes such awards, alleging they “represent a stupendous potential transfer of wealth from shareholders to a few officers and employees without reasonable merits for such rewards”.
No prize for guessing that the Omnicom board sees it differently. It cites its Compensation Committee which, it claims “has always carefully evaluated the issuance of options and done so in a manner that has been in the best interests of shareholders.”
The shareholder-appointed committee comprises three non-executive board members of Omnicom.
In 2002 the agency group's senior management, despite meeting targets, voluntarily waived their entitlement to annual cash bonuses and stock options [WAMN: 21-Apr-03].
The proposal [a McCrie in the wilderness?] which requires a two-thirds majority of stockholder votes, will be put to Omnicom’s annual meeting on May 20.
Data sourced from: AdAge.com; additional content by WARC staff