A new survey by Fund Votes, which tracks mutual fund proxy voting in North America, has found that mutual funds are increasingly supporting resolutions to control executive spending.
The survey of 47 mainstream fund groups and six socially responsible investment groups found that their support for compensation resolutions has more than doubled to 41% of votes cast, up from 20% in 2004.
Resolutions that give shareholders a say on executive compensation received a majority of mainstream mutual fund votes in 2007 and 2008.
Resolutions addressing severance pay continued to attract the highest support from mainstream fund groups, with an average of 70% of the group in favour of such resolutions.
The survey also found that socially responsible funds continue to lead the charge against runaway senior executive compensation at large U.S. corporations.