Denmark Pension Fund Takes on Executive Pay at U.S. Companies
July 1, 2017
Adding to governmental investors that are taking a more strident tone on pay issues, government pension fund ATP of Denmark has come off the sidelines and is now actively engaging in governance issues with a clear populist bent not unlike sovereign wealth fund Norges Bank. According to a recent Bloomberg interview with Christian Hyldahl, who runs ATP from its headquarters in Copenhagen, "Why should employees have very modest or no salary rises if the CEO gets more and more and more? There is a big leadership problem in that. You have to take your own medicine." According to the article, ATP has voted against 54 percent of say on pay packages this year for U.S. companies. ATP's attention to the employee versus executive comparison is notable and is an increasingly common bit of rhetoric by major investors across the Atlantic. Although the approach by European funds is different than that taken by U.S. funds, their involvement is beginning to have an impact in the U.S., at least at certain companies.