By Ross Kerber, U.S. Sustainable Business Correspondent
A little-noticed feature of Intel's deal to provide the U.S. government a 10% stake is that public officials will largely follow management's lead when voting on shareholder matters, giving the company's board a powerful ally on questions like director elections or CEO pay.
Much of the U.S. public may not be happy about those votes, at a time when polls show a widespread concern that corporate leaders make too much money. For my column this week I reviewed the landscape and spoke with a governance analyst who has another idea about how the votes could be structured.
I have also flagged our coverage about Exxon's new retail-voting option that could give it an edge in meetings, and more evidence of how much freedom of maneuver the Tesla board allows CEO Elon Musk.
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Intel CEO Lip-Bu Tan speaks at a company manufacturing conference in San Jose, California, U.S. April 29, 2025. REUTERS/Laure Andrillon/File Photo
US taxpayers, Intel thanks you for rubber-stamping CEO's pay package
State-run economies centralize accountability and make it harder for outsiders to influence decisions like how much to pay the CEO.
There is a parallel feature in the deal Intel's leaders struck last month to give the U.S. government about 10% of the shares in the challenged chipmaker. That stake now becomes a rubber stamp in the boardroom.
But the arrangement also gives corporate executives more power over non-public shareholders on votes on directors or shareholder resolutions. Critics say better terms might prorate the government's votes to neutralize their impact. You can read more in my column this week by clicking the button below.
Company founders Ben Cohen (L) and Jerry Greenfield pose for a selfie before a campaign rally with Democratic 2020 U.S. presidential candidate Bernie Sanders (I-VT) in Dover, New Hampshire, U.S. September 1, 2019. REUTERS/Brian Snyder
Ben without Jerry: Ice cream brand co-founder Jerry Greenfield has quit his iconic company after a split with parent Unilever over the conflict in Gaza and the company's ability to express political opinions on other issues.
Amazon.com said it would raise average total employee compensation to over $30 an hour including benefits. The move is a boost for its workforce for more than 1.5 million employees including part-timers as of December 2024. Amazon has faced union protests over its treatment of workers.
Exxon created a new shareholder voting system to allow retail investors to automatically side with management, which could give the energy giant an edge in future activist battles.
On my radar
Elon Musk's political activity is "up to him," said Tesla Board Chair Robyn Denholm in an interview, further evidence of the long leash on which the electric carmarker's CEO operates.
Trump revived the concept of having U.S. public companies report earnings semiannually instead of quarterly, to cut costs and promote long-term thinking. Securities regulators look more receptive this time around, as our story pointed out, and sustainability-minded investors also like the idea.
Animal fat from cattle raised on illegally cleared lands in the Amazon rainforest was purchased by a Texas refinery making "green" jet fuel, my colleagues reported.
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