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The Wall Street Journal - January 4, 2005
Lucent Hldr: Severance Pacts Are 'Unjustifiably Costly'
WASHINGTON -- Lucent Technologies Inc. (LU) said a shareholder is seeking approval from other shareholders of a proposal that would require them to authorize future golden parachutes for senior executives. According to a definitive proxy filed Monday with the Securities and Exchange Commission, the company said Walter J. Ehmer, who owns 1,380 common shares, proposed that the board seek shareholder approval of severance agreements with senior executive officers that provide benefits with a value exceeding 2.99 times the sum of the executive's base salary plus target bonus. Ehmer believes the company's current policy falls short of the standard endorsed by shareholders and that the severance agreements are "unjustifiably costly," the filing said. The company said its board recommends
that shareholders vote against the proposal. |
NorthJersey.com -January 5, 2005Business briefs MURRAY HILL - A Lucent shareholder wants the company's board to get shareholder approval when it hands out severance agreements to some senior executives. According to a filing by Lucent on Monday with the Securities and Exchange Commission, Walter J. Ehmer of Atlanta proposed the change, which will be voted on by shareowners of the Murray Hill-based telecommunications equipment maker at the company's annual meeting next month. Ehmer wants Lucent directors to "seek shareholder ratification of severance agreements with senior executive officers that provide benefits with a total present value exceeding 2.99 times the sum of the executive's base salary plus target bonus." At last year's meeting, shareholders approved a version of this proposal, with support from 65 percent of shares voted. Lucent then announced a policy agreeing to seek shareholder approval for certain future severance agreements, the filing said. - Martha McKay Copyright © 2005 North Jersey Media Group Inc. |