Our engagements promote transparent, investor-friendly disclosures of executive compensation.
We encourage leading companies to improve transparency of their executive compensation plans with more investor-friendly disclosures. For example, we voted against a major energy company's executive compensation plan three years in a row, for failing to provide sufficiently compelling reasons to support its executive pay proposal. We engaged with the company over those three years and, in the fourth year, our dialogue paid off: the company improved the quality of its compensation disclosure.
In addition to providing a more accessible compensation booklet that accompanied its proxy statement, the company presented new data that addressed our specific concerns in prior years. Our engagement provided us with reasonable certainty that the company was effectively managing its compensation program.