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Xerox retirees want exec bonuses tied to revenue
A group of Xerox Corp. retirees wants the company to tie executive bonuses to revenue growth.
The Association of Retired Xerox Employees, a Webster-based group representing more than 2,000 retirees, said it believes “Xerox’s current use of bonus award incentives to compensate its executive officers has the potential to reward mediocre company performance.”
The proposal was detailed in Xerox’s proxy statement, which was released last week.
The group’s chairman, David Coriale, said in an interview that his group submitted the proposal because it believes the plan would boost shareholder value and help protect retiree benefits by making the company stronger financially.
“If the corporation isn’t growing, then the continued erosion of our benefits is to be expected,” he said. “That’s less likely to be happening if the corporation was growingXerox revenue has been essentially flat for the past two years, hovering around $15.7 billion.The company’s board of directors recommended a “no” vote on the proposal, calling it “misguided.””If the proposal were implemented … the interests of shareholders could be in conflict with the goals of the company,” the directors wrote in the proxy. “For example, revenue could be increased at the expense of profitability or long-term share value.”Xerox said it currently gives executive bonuses based on performance measures, including revenue, cash flow and operations earnings per share.Xerox employs about 8,100 people in the Rochester areA
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