Waddell & Reed Out of Step on Executive Pay; Issues Unusual Special Mailing Arguing Pay Reform Threatens Shareholder Value

Shareowners of Waddell & Reed Financial Inc. are poised to receive a troubling letter from CEO Henry Herrmann in advance of the company’s April 7 annual meeting. In a special solicitation filed alongside the company’s proxy statement, Mr. Herrmann claims in bold print that giving shareowners an advisory vote on his compensation and that of other executives could put the company “at a serious competitive disadvantage and could erode the value of your investment.” Mr. Herrmann further exclaims that an advisory vote could “reduce executive compensation below competitive levels,” “lead to the loss of executive talent” and that a vote of disapproval on the company’s compensation policies and practices “creates the risk of unintended consequences and negative publicity”.

 

Read the full press release here.

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