Ethics Newsline®

NEW YORK
The financial services company TIAA-CREF last week announced that it will give most of its policyholders an advisory vote on the firm’s own executive compensation.

TIAA-CREF, which manages $414 billion and provides pensions, insurance, and other financial services primarily for educators, says it wants to set an example for other public companies to follow, the Associated Press reports.

The Financial Times notes that the move is the first time a major U.S. company has held a nonbinding vote on compensation practices, a practice common in the United Kingdom. Policyholders will weigh in indirectly, voting on whether the firm has adequate disclosure policies for compensation rather than voting on specific levels of pay.

According to Dow Jones Financial News Online, TIAA-CREF’s action comes as the U.S. Senate examines related legislation to rein in what some critics say are out-of-control compensation packages unrelated to executive performance.