Centene shareholders will vote on a pair of proposals that take aim at executive pay, the St. Louis Post-Dispatch reported May 9.
Both proposals are shareholder-submitted, according to the report. One would tie executive pay to maternal health. The other asks to give shareholders more input on how much senior managers are paid when they leave the company.
The proposals are non-binding, according to the report. Kateryna Holland, assistant professor of finance at Columbia-based University of Missouri, told the outlet that ignoring the results can send bad signals to the market and bring "reputational pushback," so companies usually feel some obligation to adopt them.
Centene's board said in regulatory filings that it opposes both proposals, according to the report. The board detailed existing limits on severance pay and said its policies are "consistent with market norms." The board also said prenatal and postnatal care already factor into its compensation plans.
Centene said in regulatory filings that it planned to announce preliminary voting results at its May 10 annual meeting, according to the report. The company will publish the final results within the following four business days.