In spite of the fact that Fidelity and Putnam defended their records of opposing large payment packages for high-level corporate executives this Tuesday, a new study has found that fund companies have become "enablers of excess," according to the Boston Herald.
The report finds that mutual fund firms do not stand up for shareholders by challenging excessive salaries and bonuses that are handed out to executives.
There were 18 firms analyzed for the study and of them, American Century was ranked the highest in terms of a voting record that opposed large pay packages. Morgan Stanley ranked last, Putnam was eighth, and Fidelity was 10th.
"Fidelity was pretty aggressive" in opposing management pay proposals, said Rich Fernauto, director of pension and benefits policy at the American Federation of State, County and Municipal Employees. Vin Loporchio, a Fidelity spokesman, confirmed that Fidelity takes executive pay very seriously. Dan Gallager, senior vice president at Putnam, said the results place Putnam in a "favorable light."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.