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New York City Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, today announced he has withdrawn a shareholder resolution recently submitted to Charming Shoppes, Inc. after the company agreed to provide shareholders a vote on the pay for company executives. 

The Advisory Vote on Executive Compensation, or “Say on Pay,” resolution was submitted to Charming Shoppes, Inc., on November 11, 2008 on behalf of all five New York City Pension Funds: New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System.

To view the initial resolution, click www.comptroller.nyc.gov

Charming Shoppes Inc. recently notified the Comptroller that they have agreed to adopt the resolution which allows shareholders to vote on the compensation of executive officers at each shareholder meeting, beginning in 2010.  The non-binding vote provides the board and upper management with useful information about shareholder views on the company’s senior executive compensation packages.
 
“Shareholders deserve to have their voices heard regarding the compensation being doled out to corporate executives at a time when most families are struggling to get by,” Thompson said.  “By agreeing to provide shareholders a vote, Charming Shoppes has approved a more transparent and accountable process of compensation.”

Public Advocate Betsy Gotbaum said, "Tying executive compensation to superior performance is the hallmark of good corporate governance. Charming Shoppes’ agreement to provide shareholders with a non-binding vote on the pay for company executives is a victory, not just for New York City, but for all shareholders who must hold corporate executives accountable. All public corporations should follow this lead and heed their shareholders demands for reasonable executive compensation.”

Queens Borough President Helen Marshall said, “Charming Shoppes Inc.'s decision to allow its shareholders to vote on executive compensation is an important step in the direction of responsible corporate management, and it demonstrates how a large public pension fund such as NYCERS can have a meaningful impact on our economy. I thank Comptroller Thompson for having submitted this ‘Say on Pay’ proposal on behalf of NYCERS and the other city pension systems, which
ultimately led to Charming Shoppe Inc. changing its policies.”

The resolution was the first “Say on Pay” proposal submitted to Charming Shoppes, Inc. by the NYC Pension Funds. The Funds recently submitted similar proposals to The Home Depot, Rite Aid, The Ryland Group and KB Home, which were re-files of resolutions submitted in previous years.

“Investors increasingly are concerned about mushrooming executive compensation, particularly when it is insufficiently linked to performance,” Thompson said.  “Close to 100 ‘Say on Pay’ resolutions were filed in 2008, with votes averaging 43% in favor.  Today’s announcement shows that companies are realizing the importance of the investor’s voice in this process.”

Collectively, the New York City Pension Funds own 367,672 shares of Charming Shoppes, Inc.

The New York City Pension Funds’ Trustees (chairs in bold) are as follows:

New York City Employees’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

New York City Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Dunne, Captains’ Rep.; John J. McDonnell , Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Board of Education Retirement System: mayoral appointees Schools Chancellor Joel Klein (Designee, Kathleen Grimm, serves as co-chair), Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Edison O. Jackson, Richard Menschel and Marita Regan; Patrick Sullivan (Manhattan), Wendy Gilgeous (Brooklyn), and Joan Correale (Staten Island); and employee members Joseph D'Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372, who serves as co-chair.

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