A slim minority of Wall Street bank stockholders may be mad as hell, but it looks as if most are still prepared to take it.
That's the takeaway from banks' annual investor meetings in 2016, where proposals to strengthen clawback provisions and curb golden parachutes went unheeded, as shareholders signed off on management-endorsed votes including executive pay. Despite Wall Street banks' underperformance compared to investing benchmarks in 2016, their investors are buying into executives' plans to boost returns in what has been a turbulent market.
JPMorgan Chase's annual meeting went so smoothly that nary a shareholder even approached the microphone during the gathering Tuesday in New Orleans to press CEO Jamie Dimon for details on his plans for the bank. Shareholders may have been busy counting their blessings (or returns) after the bank increased its dividend to 48 cents a share.
Proposals that put pressure on JPMorgan executives were roundly rejected, including splitting the CEO and chairman role, and a pay clawback amendment. An attempt by an AFL-CIO representative to exclude golden parachutes for directors who quit before their terms expire and pursue government service failed; and a measure to break up the bank fell short by an enormous margin, earning 3 percent of shareholders' support. But pay packages were OK'd.