An insurer will be letting investors have some say over how top executives are paid.
The board of Prudential Financial Inc., Newark, N.J., has approved a measure that will permit shareholders to cast an “advisory vote” on executive compensation.
The advisory vote system will take effect at Prudential annual meetings starting in 2010.
The system will permit Prudential shareholders to weigh in on the overall executive compensation policies and procedures employed by the compensation committee for Prudential’s highest-level executive officers every other year, the company says.
Jon Hanson, Prudential’s lead director, says the company board adopted the new policy in response to shareholder input.