XEROX RETIREES WANT EXEC BONUSES ……

[Anonymous]

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

[Author]

April 20, 2006 at 12:16 PM