A movement to give shareholders some say regarding executive pay is gaining momentum, leaving Corporate America uneasy and triggering debate within the legal profession concerning the role of shareholders.
During the past year, attorneys say, so-called "say on pay" policies -- which give shareholders a nonbinding vote on how much executives are paid -- have taken off in the business world, fueled largely by public outrage over exorbitant executive salaries.
Talking to shareholders in the off-season about these issues also is a good practice, she added.
Larry Mandala of Dallas-based Munck Butrus Carter, who advises companies on executive compensation, said his clients are staying away from say on pay for now.
"None of my clients are ready to jump in right now," Mandala said.
"This is really only the second year that you've seen the mad dash by large companies to take a look at the issue."
Mandala said his clients, which are smaller public companies, "want to see what the larger companies do as a whole before they jump in."