Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fidelity to Vote Against Shorter-Term Executive Bonus Plans

Sept. 23 (Bloomberg) -- Fidelity Worldwide Investment, which oversees about $257 billion in assets, said it will vote against executive compensation plans unless companies extend the minimum periods for bonuses to pay out.

The money manager wrote 400 publicly traded European companies last summer urging boards to lengthen the period that executives must own shares to five years before they are allowed to sell, Fidelity, the world’s second-largest mutual fund manager, said in a statement today. If they don’t, Fidelity said it will vote against company compensation reports.

“We have not set out to be radical nor confrontational,” Dominic Rossi, Fidelity Worldwide’s global chief investment officer of equities, said in the statement. The proposal requires “an executive to hold more shares for longer, rather than cashing them out at the earliest opportunity. This results in a far better alignment between executive compensation and the long-term performance of the company.”

Starting in January, Fidelity said it will require companies in the U.K. and Europe to extend the holding period to more than three years. The period must then be extended to five years by January 2015, it said.

The Financial Times reported Rossi’s comments earlier today.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.