"We do believe that the day of reckoning has come for overpaid executives." So says one critic of execution compensation practices. But has that day really come? We'll soon find out.

By the time annual meeting season gets underway, companies will have already devoted a lot of energy and time toward crafting their pay proposals and justifications in a manner they hope will win support. Recall that Section 951 of Dodd-Frank requires once every three years, a company's annual proxy statement include a resolution that asks shareholders to approve executive compensation.

These are nonbinding votes, but they are not without consequences. Directors certainly do not want to be targeted. Nor do they want to be bullied into paying executives any less than they deserve.

Reuters reports that companies are already acting. Some have done away with gross-ups, "reimbursements for taxes paid on perks or so-called golden parachutes." Others are cutting certain high-value amenities, like personal use of corporate jets. Perks are certainly out of favor.

Many companies are spending more time strategizing how to best meet the presentation requirements. But in the end, shareholders will weigh performance against pay and make decisions. While profits have rebounded and the market is strong, we may still see a lot of "no" votes.

For more:
- here's the article

Related Articles:
Dodd-Frank and the compensation committee
Use social media to talk to shareholders
Virtual annual meetings a good idea?
Time to beef up internal auditors role in executive pay