Colgate Announces Implementation of Advisory Vote on Executive Compensation

BOSTON, MA///Feb. 26, 2010///Today Colgate-Palmolive Company announced its Board has decided to implement an advisory vote on executive compensation at its 2010 stockholder meeting.

Mr. Daniel Stranahan, Chair of the Finance Committee of the Needmor Fund and Timothy Smith, Senior Vice President of Walden Asset Management commended Colgate, stating “Colgate’s top management and Board have carefully studied this particular governance change related to executive compensation over a period of years. 

The company also discussed the issue with numerous Colgate shareholders, including through its participation in The Working Group on the Advisory Vote, and carefully analyzed the results of the 2009 shareholder vote supporting this change.

By implementing the advisory vote, Colgate Palmolive is opening yet another avenue for shareholders to communicate their feedback to the Board and management on the Company’s executive pay policies and practices.   The vote is one helpful tool in this process.

This is exactly the attitude and forward looking approach companies should take as they move forward with the advisory vote.  We commend Colgate Palmolive for yet another example of instituting good governance in co-operation with shareowners.”

The Needmor Fund has been the primary sponsor of the shareholder resolution seeking the adoption by Colgate of the advisory vote.

In 2009 the shareholder resolution requesting this governance change received a 45% vote in favor, a strong showing by shareholders supporting this change.

This year Needmor and a number of other foundations, religious investors, individuals and Walden Asset Management re-filed the request for the “Say on Pay” or advisory vote on executive compensation policy.  The resolution has been withdrawn in light of the agreement.

While Colgate will continue to monitor developments regarding the advisory vote, including pending legislation that would mandate an annual advisory vote, the Board currently plans to seek an advisory vote on compensation every other year.

Resolution sponsors prefer an annual “advisory vote” on principle just as we would ratify auditors annually and vote for the entire Board annually.

In addition, we continue to hope for and expect legislative action on this issue that would require an annual advisory vote just as all TARP companies are required to do.

At this point over 50 companies have agreed to implement Say on Pay resolutions and all TARP companies are required to put such a vote on their proxy statement annually.

Colgate and other companies have indicated that they would, of course, move to an annual advisory vote when legislation requires.

CONTACT:
Timothy Smith, Senior Vice President
Environment, Social and Governance Group
Walden Asset Management
617-726-7155 or tsmith@bostontrust.com