Shareholder Vote Regarding Excessive Golden Parachutes | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>The Travelers Companies, Inc.</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Corporate Governance </p>
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<strong>Focus Area:</strong>
<p>Executive Compensation </p>
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<strong>Status:</strong>
<p>On Proxy</p>
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<h2>Resolution Text</h2>
<p>Shareholders request that the Board seek shareholder approval of any senior manager’s new or renewed pay package that provides for severance or termination payments with an estimated value exceeding 2.99 times the sum of the executive’s base salary plus target short-term bonus. This proposal only applies to the Named Executive Officers. This provision shall at least be included in the Travelers Governess Guidelines or similar document.<br><br>“Severance or termination payments” include cash, equity or other pay that is paid out or vests due to a senior executive’s termination for any reason. Payments include those provided under employment agreements, severance plans, and change-in-control clauses in long-term equity plans, but not life insurance, pension benefits, or deferred compensation earned and vested prior to termination. <br><br>“Estimated total value” includes: lump-sum payments; payments offsetting tax liabilities, perquisites or benefits not vested under a plan generally available to management employees, post-employment consulting fees or office expense and equity awards if vesting is accelerated, or a performance condition waived, due to termination. <br><br>The Board shall retain the option to seek shareholder approval after material terms are agreed upon.</p>
<p>This proposal is relevant even if there are current golden parachute limits. A limit on golden parachutes is like a speed limit. A speed limit by itself does not guarantee that the speed limit will never be exceeded. Like this proposal the rules associated with a speed limit provide consequences if the limit is exceeded. With this proposal the consequences are a non-binding shareholder vote is required for unreasonably rich golden parachutes.</p>
<p>This proposal places no limit on long-term equity pay or any other type pay. This proposal thus has no impact on the ability to attract executive talent and does not discourage the use of long-term equity pay because it places no limit on golden parachutes. It simply requires that overly rich golden parachutes be subject to a non binding shareholder vote at a shareholder meeting already scheduled for other matters.</p>
<p>This proposal is relevant because the annual say on executive pay vote does not have a separate section for approving or rejecting golden parachutes. </p>
<p>Travelers scores 10 in regard to executive pay with 10 being the worse possible score. Adoption of this proposal may improve the excessively low executive pay score of Travelers which in turn could improve the stock price.</p>
<p>This proposal topic also received between 51% and 65% support at:<br>FedEx (FDX)<br>Spirit AeroSystems (SPR)<br>Alaska Air (ALK)<br>AbbVie  (ABBV)<br>Fiserv (FISV)</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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