AFL-CIO Urges Pinnacle Entertainment to Reform Corporate Governance
Proposes Annual “Say-on-Pay” Vote on Executive Compensation
In
an independent proxy solicitation at Pinnacle Entertainment, Inc.
(NYSE: PNK), the AFL-CIO urged shareholders to vote for a proposal
urging that the Board of Directors adopt an annual advisory vote by
shareholders on executive compensation. Shareholders will vote on the
AFL-CIO's "Say-on-Pay" proposal at Pinnacle Entertainment's annual
shareholder meeting on May 11, 2010 in Las Vegas, Nevada.
According
to AFL-CIO President Richard Trumka, “We believe that CEO pay should
not reward underperformance. But at Pinnacle Entertainment over the
past two years, former CEO Daniel Lee received millions of dollars in
pay and severance while the company lost hundreds of millions. An
annual Say-on-Pay vote will give shareholders a valuable opportunity to
signal their executive pay concerns to the Board of Directors.”
The
AFL-CIO's proxy statement notes that Pinnacle Entertainment lost $258.3
million in 2009 while its former CEO received $4.5 million in total
compensation, including $2.8 million in severance. In 2008, Mr. Lee
received $5.5 million in total compensation when the company lost
$322.6 million. Pinnacle Entertainment's stock has underperformed the
Dow Jones US Gambling Index by 26 percent over the past five years.
In
addition to calling for a "Say-on-Pay" vote, earlier this year the
AFL-CIO submitted proposals to Pinnacle Entertainment urging the
establishment of an independent Board Chairman, majority vote director
elections, and a ban on tax gross-up payments to executives and
directors. The AFL-CIO withdrew these three proposals after the Board
of Directors substantially implemented these reforms on March 29, 2010.
Shareholders
can vote for the AFL-CIO's "Say-on-Pay" proposal by voting the
AFL-CIO's blue proxy card or Pinnacle Entertainment's white proxy card.
A copy of the AFL-CIO's proxy statement is available by contacting the
AFL-CIO's Office of Investment at (202) 637-3900.
American Federation of Labor and Congress of Industrial Organizations
