This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Sun Shareholders Vote for Say in Exec Pay

SANTA CLARA, Calif. -- A day after voters ousted the nation's incumbent political party, Sun Microsystems (JAVA) was rocked by another vote.

At the company's annual shareholder meeting Wednesday, two-thirds of Sun shareholders demanded a greater voice in setting pay packages for the company's top brass.

The 67% vote of shares in favor of the so-called "say on pay" proposal marked the highest level of support for such a measure at a large-cap company, according to the measure's sponsor, and underscored the dissatisfaction and loss of patience among Sun shareholders.

"We've reached a tipping point in the outrage toward extraordinary CEO pay unrelated to performance," said Rich Ferlauto, of the American Federation of State, County and Municipal Employee Pension Plans, which helped sponsor the measure.

The Santa Clara, Calif., computer maker has struggled to turn a profit for years, even as competitors such as IBM (IBM) and Hewlett-Packard (HPQ) have thrived. Last week, Sun posted a $1.7 billion loss for its fiscal first quarter that included a writedown of all the goodwill value associated with its computer systems business.

Sun's stock, which slipped 31 cents to $4.62 Wednesday, is trading at its lowest level in more than 10 years and is down 76% since the company implemented a reverse stock split last November that boosted the share price to around $20.

A slew of investors gathered in Sun's corporate auditorium took turns at a microphone Wednesday to vent their frustration with the company, its management and its board: How can the company justify bonuses paid to any of Sun's executives? Why is Sun failing while its rivals continue to increase their revenue? What does the company's management have to say about the failed reverse stock split?

Stock quotes in this article: JAVA 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs