The American Federation of State, County and Municipal Employees released a report Tuesday calling AllianceBernstein, Barclays Global Investors and AIM "pay enablers."

In conjunction with The Corporate Library, AFSCME examined the 2006 proxy voting records on executive pay measures for 29 mutual fund families.

"CEOs should be paid for performance. Investors in these mutual funds should be outraged that their assets are being used to prop up undeserved CEO pay," said Gerald W. McEntee, president of the 1.4 million-member union.

The report, titled "Failing Fiduciaries," maintains that mutual fund managers have failed to use their proxy power to limit executive pay.

In 2006, funds supported management proposals 75.8% of the time, compared to 75.6% in 2005. When it came to pay-related packages, shareholder proposals won support in only 46.5% of cases. Meanwhile, the median compensation among chief executives of companies listed in the Standard & Poor's 500 Index increased 23.8% from 2005.

AllianceBernstein supported 94.8% of management compensation proposals, and 31.1% of shareholder proposals. Barclays supported executive pay bids 94.7% of the time and 33.8% of investor proposals, and AIM voted with management in 91.1% of proposals, and supported 35.7% of shareholder proposals.

TIAA-CREF, T. Rowe Price and Columbia Funds, on the other hand, supported shareholders 72.6%, 77.1% and 70.8% of the time, respectively.

(c) 2007 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

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